The following is a report from Investing.com.
On Tuesday, Aug. 12, Camping World Holdings Inc. presented at the J.P. Morgan Auto Conference 2025, outlining its strategic initiatives and financial performance. The company discussed significant market share gains and future growth prospects, while also addressing challenges such as interest rate impacts. CEO Marcus Lemonis expressed optimism about Camping World’s trajectory, highlighting both successes and areas for improvement.
Key Takeaways
- Camping World achieved over 20% year-over-year growth in both new and used RV units.
- The company aims to reduce its leverage ratio to 3.9 or below within 24 months.
- Strategic focus on revitalizing the used RV business and leveraging data-driven approaches.
- Anticipates a potential increase in new RV retail sales in 2026.
- Emphasizes disciplined capital allocation and debt reduction.
Financial Results
- Market Share Gains: Camping World outpaced the market with over 20% growth in new and used RV units.
- Revenue Growth: Continued growth in July, with new unit sales up high single digits and used unit sales up over 20%.
- Average Selling Price (ASP): Sequential increases in ASPs for both new and used units, suggesting pricing stabilization.
- SG&A Improvement: Aims to improve SG&A as a percentage of gross profit by 300 to 400 basis points, revising from an initial 600 to 700 basis points target.
- Cost Reduction: Reduced headcount by 1,000 employees and consolidated 16 locations, with plans to cut an additional $10 million to $15 million in costs.
- Leverage Target: Paid down $70 million in debt, aiming for a leverage ratio of 3.9 or below.
Operational Updates
- Contract Manufacturing Strategy: Focuses on entry-level price points to drive volume and increase turns on new RVs.
- Used RV Comeback: Revitalizing the used RV business following model year deflation in 2024.
- Data-Driven Approach: Utilizing data and AI for pricing and predictive models to optimize market share.
- Rooftop Productivity: Enhanced productivity through consolidation of underperforming locations.
- Headcount Reduction: Strategic reductions to improve efficiency and performance.
Future Outlook
- New RV Pricing: Expects a 3% to 6% increase in new RV prices for model year 2026.
- New RV Units: Industry expected to sell approximately 360,000 new units in 2026.
- Interest Rates: Anticipates a 0.5 to 1 point decrease in interest rates, though not factored into current forecasts.
- Inventory and Capital Allocation: $600 million invested in used inventory, focusing on cash accumulation and debt repayment.
- Good Sam Growth: Exploring opportunities within the Good Sam business, including acquisitions and partnerships.
Q&A Highlights
- Market Share: Camping World’s market share is at its highest, driven by increased data utilization.
- Consumer Behavior: Notable change in consumer behavior with strengthening business in the last 60 days.
- Competition: Confident in outperforming competitors as they begin to recover.
- Loan Durations: Average RV loan durations are 180 to 240 months, with an average life of 4 to 4.5 years.
- Interest Rate Impact: Interest rates affect the price point of purchases, not the decision to buy an RV.
View the full transcript and report from Investing.com here.
