The following is a report from Investing.com.
On Wednesday, Nov. 19, Camping World Holdings Inc. presented a strategic overview at the Stephens Annual Investment Conference. The discussion, led by key executives, highlighted both the company’s growth potential and the challenges it faces. While optimism surrounds future earnings and strategic acquisitions, the company is also navigating industry deflation and cost optimization.
Key Takeaways
- Camping World operates through two main brands: Camping World and Good Sam.
- The company is targeting SG&A savings of at least $15 million.
- Used RV sales are projected to grow by 7%-8% annually.
- The company holds a 13.5% market share in North American RV sales.
- The focus remains on affordability and personalized customer experiences.
Financial Results
- Adjusted EBITDA target for 2026 is set at $310 million.
- SG&A savings are anticipated to be at least $15 million.
- Used RV sales are expected to increase by high single digits, with potential to exceed this target.
- Finance and insurance income per vehicle is approximately $5,000.
Operational Updates
- The company is implementing a “back to basics” strategy to optimize SG&A and inventory.
- Efforts are being made to rightsize inventory and SG&A structures post-pandemic.
- Focus is on narrowing the assortment and returning to core business practices.
Future Outlook
- Industry volume is expected to stabilize around 400,000 units.
- Midcycle EBITDA goal of $525 million is based on existing store count.
- Continued focus on mergers and acquisitions to drive growth.
- Anticipated improvement in net debt leverage through earnings and revolver paydown.
- Interest rates are expected to see an additional 50-75 basis points of unlock.
Q&A Highlights
- Proprietary residual value calculations and targeted lead generation are strategies for growth in the used RV market.
- The private label business is a strategic tool for offering diverse floor plans and price points.
- Expansion of the Good Sam brand into marine and power sports industries is planned.
- The roadside assistance business has an NPS score of approximately 78.
- Affordability remains a crucial factor influencing consumer demand.
View the full transcript and report from Investing.com here.
