The following is a report from Investing.com.
On Wednesday, 04 June, Camping World Holdings Inc. participated in the Baird Global Consumer, Technology & Services Conference 2025. The company discussed its strategic focus on affordability and market share growth in the used RV sector, while addressing challenges in the new RV market. With a commitment to reducing expenses and increasing profitability, Camping World outlined its path forward amid industry fluctuations.
Key Takeaways
- Camping World aims for a $7 billion revenue target and an 8% EBITDA margin.
- The company is focusing on the more stable and profitable used RV market.
- SG&A expenses are set to be reduced by 600-700 basis points.
- The Good Sam business is highlighted as a key asset, contributing significantly to revenue and EBITDA.
- Camping World reported strong sales growth during Memorial Day weekend, outpacing industry trends.
Financial Results
- Revenue target: $7 billion
- EBITDA margin target: 8%
- SG&A reduction: 600-700 basis points
- Anticipated bottom line growth: 60%-70% this year
Camping World has set ambitious financial goals, emphasizing the importance of cost reduction and profitability. The company expects modest growth in both new and used RV units, with historical margins anticipated.
Operational Updates
- Memorial Day weekend sales saw mid-teens growth, contrasting with industry decline.
- Exclusively branded products make up approximately 40% of new RV sales.
- Used RV market share increased from 5% to 9% in recent years.
- The company has centralized its used RV buying process in Arizona and launched rvs.com for peer-to-peer sales.
Camping World continues to leverage its procurement and valuation strategies to enhance its market position, particularly in the used RV sector.
Future Outlook
- Expected sales: 350,000 new RV units and 750,000 used RV units this year.
- Focus on growing the used RV marketplace by encouraging customers to sell underutilized assets.
- The new RV market is expected to remain stable over the coming years.
- The company aims to deleverage and rescale its operations to build investor confidence.
Camping World is monitoring potential tax provisions that could favor RV loan deductibility and anticipates dealer consolidation later in the year.
Q&A Highlights
- The company attributes its success to affordability and targeted price points.
- Data science and analytics are key to effective inventory management.
- Camping World is consolidating locations and optimizing inventory to reduce fixed costs.
Camping World remains committed to its strategic goals of selling more units, increasing profitability, and reducing leverage.
View the full transcript and report from Investing.com here.
