On July 31, 2024, Camping World Holdings Inc (CWH, Financial) released its 8-K filing for the second quarter ended June 30, 2024. The company, a leading retailer of RVs and related products and services, reported results that fell short of analyst estimates.
Company Overview
Camping World Holdings Inc is a retailer of RVs and related products and services. The company operates through two reportable segments: Good Sam Services and Plans, which includes the sale of emergency roadside assistance plans, insurance programs, and other services; and RV and Outdoor Retail, which includes the sale of new and used RVs, RV service and collision work, and RV parts and accessories.
Performance and Challenges
For the second quarter of 2024, Camping World Holdings Inc reported total revenue of $1.81 billion, a decrease from $1.90 billion in the same period last year. This figure fell short of the analyst estimate of $1.88 billion. The company also reported a net income of $9.77 million, or $0.22 per diluted share, compared to $28.70 million, or $0.64 per diluted share, in the second quarter of 2023. This was below the analyst estimate of $0.49 per share.
Financial Achievements
Despite the challenges, Camping World Holdings Inc achieved a record new unit market share, selling over 22,000 new RVs, up 17% year-over-year. The company also saw meaningful new same-store volume acceleration in June and July, positioning itself for a potentially strong 2025.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $1.81 billion | $1.90 billion |
| Net Income | $9.77 million | $28.70 million |
| Earnings Per Share (Diluted) | $0.22 | $0.64 |
Balance Sheet and Cash Flow
As of June 30, 2024, Camping World Holdings Inc reported total assets of $4.96 billion, up from $4.80 billion at the end of June 2023. The company’s cash and cash equivalents stood at $23.74 million, down from $54.46 million a year earlier. Net cash provided by operating activities was $84.34 million for the first six months of 2024, compared to $227.96 million in the same period last year.
Commentary
Marcus Lemonis, Chairman and CEO, stated, “Our record new unit market share was a direct result of listening to the consumer and their mandate for affordability. We saw year-over-year same store new vehicle unit growth accelerate into the mid-teens in June and into the low-twenties in July, positioning our Company for a strong 2025.”
Matt Wagner, President, commented, “As we prepare for an improved 2025, our unwavering philosophy is to remain disciplined around used aging and stocking levels, regardless of the macro environment. Over the last 30 days, we have begun to thoughtfully ramp up our used stocking levels, with year-over-year increases for the first time in over 10 months and a record volume of consignments.”
Analysis
Camping World Holdings Inc's performance in Q2 2024 highlights both achievements and challenges. The record new unit market share and same-store volume acceleration are positive indicators for future growth. However, the decline in revenue and net income compared to the previous year, along with missing analyst estimates, underscores the challenges the company faces in a competitive and fluctuating market.
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Explore the complete 8-K earnings release (here) from Camping World Holdings Inc for further details.
