Camping World Holdings reported results for the fourth quarter and full year ended Dec. 31, 2024.
Marcus Lemonis, chairman and chief executive officer of CWH, said, “Our combined new and used same store unit sales grew for the second quarter in a row, with increased revenue, increased gross profit and improved adjusted EBITDA, a testament to our unwavering focus on product development, affordability and used inventory procurement. We see green shoots unfolding across the broader RV landscape, supporting our expectation for more stable industry trends throughout 2025.”
Matthew Wagner, president of CWH, said, “We are very pleased with our momentum to start 2025. Our same store used unit trends increased high-teens percentages year-over-year in January, and same store new units increased low-singles, in line with our expectations. This early season performance gives us confidence in achieving the 2025 guideposts that we provided on our last call.”
Lemonis concluded, “The organization is positioned exceptionally well for organic and inorganic growth in 2025. Our focus rests solely on selling more RVs, cost discipline and driving significantly improved profitability across our enterprise.”
Fourth Quarter-Over-Quarter Operating Highlights
- Revenue was $1.2 billion for the fourth quarter, an increase of $95.1 million, or 8.6%.
- New vehicle revenue was $497.5 million for the fourth quarter, an increase of $48.1 million, or 10.7%, and new vehicle unit sales were 11,575 units, an increase of 858 units, or 8%. Used vehicle revenue was $348.1 million for the fourth quarter, an increase of $26.5 million, or 8.2%, and used vehicle unit sales were 10,573 units, an increase of 1,081 units, or 11.4%. Combined new and used vehicle unit sales were 22,148, an increase of 1,939 units, or 9.6%.
- Average selling price of new vehicles sold increased 2.5% and average selling price of used vehicles sold decreased 2.8%.
- Same store new vehicle unit sales increased 4.5% for the fourth quarter and same store used vehicle unit sales increased 4%. Combined same store new and used vehicle unit sales increased 4.2%.
- Products, services and other revenue was $181.4 million, an increase of $2.4 million, or 1.4%, driven largely by the increase in used vehicles sold leading to an increase in retail product attachment to vehicle sales as used vehicles experience higher retail product attachment than new vehicles, which was partially offset by the divestiture of the company’s RV furniture business in May 2024.
- New vehicle gross margin was 15.2%, a decrease of 372 basis points, driven primarily by a slightly higher mix of class B and C motorized units in 2024, lower manufacturer promotional incentives and slightly higher cost of 2025 model year new vehicles, partially offset by the 2.5% higher average selling price. Used vehicle gross margin was 18.7%, an increase of 368 basis points, as a result of the discounting of higher-cost used vehicles in the fourth quarter of 2023, partially offset by the 2.8% lower average selling price.
- Gross profit was $376.9 million, an increase of $33.5 million, or 9.7%, and total gross margin was 31.3%, an increase of 33 basis points. The gross profit increase was mainly driven by $17.1 million higher finance and insurance, net (F&I) gross profit largely from the 9.6% increase in combined new and used vehicle unit sales and new F&I offerings, $16.8 million higher used vehicle gross profit from the increase in used vehicle unit sales and gross margin as discussed above, and $11.1 million higher products, service and other gross profit as a byproduct of the higher used vehicle sales and higher gross margins from the divestiture of the RV furniture business in May 2024. These gross profit increases were partially offset by lower gross margins from new vehicles as discussed above.
- Selling, general and administrative expenses (SG&A) were $367.8 million, an increase of $30.7 million, or 9.1%. This increase was primarily driven by $26.2 million of increased employee compensation costs excluding equity-based compensation and including commissions, due in part to an over $6.0 million increase in health insurance claim costs, and $6.3 million of additional advertising expenses. SG&A Excluding Stock-Based Compensation (SBC) was $362.4 million, an increase of $30.7 million, or 9.3%.
- Floorplan interest expense was $17.1 million, a decrease of $4.7 million, or 21.6%, and other interest expense, net was $32.3 million, a decrease of $3.1 million, or 8.7%. These decreases were primarily as a result of lower interest rates, and, to a lesser extent, lower principal balances.
- Net loss was $(59.5) million for the fourth quarter of 2024, a decrease of $12.0 million, or 25.1%. Adjusted EBITDA was $(2.5) million, an increase of $6.4 million, or 72.1%.
- Diluted loss per share of Class A common stock was $(0.56), a decrease of $0.10, or 21.7%. Adjusted loss per share – diluted of Class A common stock was $(0.47), a decrease of $0.03, or 6.8%.
- The total number of store locations was 206 as of Dec. 31, 2024, a net increase of four store locations from Dec. 31, 2023, or 2%.
Full Year-Over-Year Operating Highlights
- Revenue was $6.1 billion, a decrease of $126.5 million, or 2%.
- New vehicle revenue was $2.8 billion, an increase of $249.4 million, or 9.7%, and new vehicle unit sales were 70,484 units, an increase of 11,753 units, or 20%. Used vehicle revenue was $1.6 billion, a decrease of $365.8 million, or 18.5%, and used vehicle unit sales were 51,032 units, a decrease of 5,791 units, or 10.2%. Combined new and used vehicle unit sales were 121,516, an increase of 5,962 units, or 5.2%.
- Average selling price of new vehicles declined 8.6% driven primarily by the lower cost of 2024 model year travel trailers and discounting of pre-2024 model year new vehicles. Average selling price of used vehicles declined 9.2% due to discounting of used vehicles in response to declines in new vehicle prices.
- Same store new vehicle unit sales increased 15% and same store used vehicle unit sales decreased 14.6%. Combined same store new and used vehicle unit sales were relatively flat at an increase of 0.3%.
- Products, services and other revenue was $820.1 million, a decline of 49.9 million, or 5.7%, driven largely by a reduction in sales activity resulting from Active Sports Restructuring, the divestiture of the RV furniture business in May 2024 and fewer used vehicles sold leading to a decline in retail product attachment to vehicle sales as used vehicles experience higher retail product attachment than new vehicles.
- Gross profit was $1.8 billion, a decrease of $53.2 million, or 2.8%, and total gross margin was 29.9%, a decrease of 25 basis points. The gross profit decline was mainly driven by the lower average selling prices on new and used vehicles, which was partially offset by the lower average cost of new and used vehicles, and a nonrecurring $5.5 million in savings from finalizing contract negotiations to exit an arrangement with a service partner for Good Sam Services and Plans in 2023. These decreases were partially offset by improved gross margins for products, services and other driven largely by the divestiture of the company’s RV furniture business in May 2024.
- SG&A was $1.6 billion, an increase of $34.1 million, or 2.2%. This increase was primarily driven by $29.4 million of additional advertising expenses, and $7.3 million of additional employee compensation costs, consisting of a $9.3 million increase in employee cash compensation expenses, partially offset by a $2.0 million decrease in SBC expenses. SG&A Excluding SBC was also $1.6 billion, an increase of $36.1 million, or 2.4%.
- Floorplan interest expense was $95.1 million, an increase of $12.0 million, or 14.5%, and other interest expense, net was $140.4 million, an increase of $5.2 million, or 3.8%. These increases were primarily a result of higher principal balances and higher average interest rates.
- Net loss was $(78.9) million, a change of $131.8 million from net income of $52.9 million in 2023. Adjusted EBITDA was $178.8 million, a decrease of $107.4 million, or 37.5%.
- Diluted loss per share of Class A common stock was $(0.80), a change of $1.37 from $0.57 in diluted earnings per share of Class A common stock in 2023. Adjusted loss per share – diluted of Class A common stock was $(0.40), a change of $1.24 from $0.84 in adjusted earnings per share – diluted of Class A common stock in 2023.
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