Camping World Holdings has released its third quarter results showing a total revenue increase of 25 percent, to $1.24 billion. Gross profit increased 27.3 percent, to $356.7 million, and gross margin increased 51 basis points, to 28.8 percent. Income from operations increased 27.8 percent, to $112.1 million, and net income increased 24.6 percent, to $85.3 million.
“We are very pleased with our third quarter results and the continued strength in the underlying trends across our business,” said Marcus Lemonis, chairman and CEO. “Looking ahead, we believe we are well positioned to continue gaining share in the RV market and broadening our reach across the outdoor lifestyle consumer market.”
New vehicle units sold increased 33.3 percent, to 19,107 units, and the average selling price of a new vehicle decreased 1.6 percent, to $37,430. The increase in new vehicle units sold was primarily driven by strong consumer demand for new vehicles. The decrease in the average selling price of a new vehicle was driven by a higher mix of lower-priced towable units.
Used vehicle units sold increased 7.2 percent, to 8,557 units, and the average selling price of a used vehicle decreased 3.3 percent to $22,009. The increase in used vehicle units sold was primarily driven by sales at new stores.
Consumer services and plans revenue increased 1.6 percent, to $46.2 million, and retail revenue increased 26.1 percent, to $1.19 billion. In the retail segment, new vehicle revenue increased 31.2 percent, to $715.2 million primarily driven by the 33.3 percent increase in new vehicle unit sales, used vehicle revenue increased 3.7 percent to $188.3 million, parts, services and other revenue increased 24.3 percent, to $187.8 million, and finance and insurance revenue increased 50 percent, to $101.6 million.
F&I, net revenue as a percentage of total new and used vehicle revenue increased to 11.2 percent, from 9.3 percent in last year’s third quarter.
Same store sales for the base of 115 retail locations that were open both at the end of the corresponding period and at the beginning of the preceding fiscal year increased 9.4 percent, to $982.2 million for the three months ended Sept. 30. The increase in same store sales was primarily driven by a 14.5 percent increase in new vehicle same store sales, a 30.5 percent increase in F&I same store sales, and a 1.4 percent increase in parts, services and other same store sales, partially offset by a 7.9 percent decrease in used vehicle same store sales.
The company operated a total of 137 Camping World retail locations, two Overton’s locations, two TheHouse.com locations, and one W82 location as of Sept. 30, compared to 120 Camping World retail locations and zero Overton’s, TheHouse.com, and W82 locations at Sept. 30, 2016.
Floorplan interest expense increased to $7.4 million from $4.3 million in last year’s third quarter.