Camping World Holdings Inc. jumped as much as 35 percent on Friday after reporting first-quarter results that beat analysts’ projections, driven by stronger-than-expected sales of recreational vehicles.
Analysts universally applauded the results and were surprised by the recent strength in RV sales, which they attributed to consumers’ desire to vacation while maintaining social distance. Camping World management noted that new customers appeared to be entering the market as well with trade-in rates dropping to 20 percent from the normal 30-35 percent.
Click here to read the full report from Bloomberg’s Gregory Calderone, courtesy Yahoo! Finance.
Camping World benefited from a pivot to online sales, JPMorgan analyst Ryan Brinkman wrote in a note, saying the strategy was “unprecedented” and led to sales beginning to track positively year-over-year, capped by the strongest weekend ever in early May.
Baird analyst Craig Kennison, who more than doubled his price target to $14 from $6 while maintaining his neutral rating, said that outdoor activities can capture mind share as consumers shun crowded spaces.