Camping World Holdings, Inc. Q1 FY2025 earnings call

• Mandates: Entered the year with goals to sell more RVs, improve margins, and reduce costs, aiming to improve SG&A as a percentage of growth by 600-700 basis points.
• Actions taken: Made difficult decisions on team members, consolidated dealerships, and reduced costs. Achieved EBITDA growth nearly 4x year-over-year.
• Market share: Reached record combined new and used unit market share over 14% through February.
• Used and new sales: April to date used same-store unit sales up high teens, new up high single digits; opened nine dealerships, including five Lazydays locations that were profitable in March.
• Good Sam: Invested in roadside assistance for margin stabilization and earnings growth.
• Product services: Improved gross profit despite top line pressure; eliminated ~$35 million annualized SG&A through cost reductions.

For the first quarter, Camping World Holdings, Inc. recorded revenue of $1.4 billion, a 4% increase primarily driven by a 30% rise in used unit sales. Used vehicle gross margins were 18.6%, showing year-over-year improvement. In Good Sam, investments were made in roadside assistance for margin stabilization and earnings growth later in 2025. Within product services and other, core dealer service revenues and the accessory business had improved gross profit and margins despite top line pressure from the sale of the furniture business and higher used inventory reconditioning hours. Adjusted EBITDA was $31.1 million compared to $8.2 million last year. Cash position was about $179 million, with used inventory net of flooring at $367 million, parts inventory at $203 million, and real estate owned without a mortgage at $205 million. Revenue contribution: Used unit sales contributed significantly to the 4% revenue increase, with Good Sam, product services, etc., also playing roles in the overall revenue mix.

• Growth expectations: Expect growth in excess of low double-digits in used units, low single-digits in new; vehicle gross margins within historical range; SG&A as a percentage of gross profit to improve 600-700 basis points.
• ASPs: Softness was seen but actions taken to mitigate; anticipate ASPs to accelerate in Q2, Q3, Q4 but operating as if they could be off ~$2000.
• Tariffs: No material fallout expected for the RV industry; company uniquely positioned; new model year '26 pricing up mid-single digits, used business benefits from new price increases.

• Potential impact of tariffs on consumer spending in other areas, with the company taking SG&A moves and mix shifts to address.
• Concerns about financial leverage, with the company focused on de-levering.
• Macro-economic factors affecting consumer confidence and credit availability.

Q: Joe Altobello from Raymond James asked about ASPs, mix vs promotion, and support from OEM partners.

A: Marcus and Matthew responded about mix, market share, and OEM collaboration.

Q: Sean Wagner from Citigroup asked about tariff pricing increase.

A: Marcus and Matthew discussed tariff impact, model year '26 pricing, and used business benefits.

Q: Alex Perry from Bank of America asked about strength vs consumer confidence and used up performance.

A: Marcus and Matthew talked about installed base, affordability, and used inventory procurement.

Q: Michael Swartz from Truist Securities asked about cost reduction cadence and industry retail expectations.

A: Marcus and Matthew discussed cost cuts, M&A, and industry retail projections.

Q: Scott Stember from ROTH MKM asked about rate environment, lending, and parts/service.

A: Marcus talked about retail lenders, interest rates, and customer activity.

Q: Noah Zatzkin from KeyBanc Capital Markets asked about market consolidations and M&A.

A: Marcus and Thomas/Kirn discussed accretive consolidations and M&A strategy.

Q: Tristan Thomas-Martin from BMO Capital Markets asked about model year '26 price increase mix and vehicle gross margins.

A: Matthew and Marcus discussed price increase mix, contract manufacturing, and gross margin considerations.

Q: John Healy from Northcoast Research asked about store count target.

A: Marcus talked about growth, profitability, and store count strategy.

Q: Bret Jordan from Jefferies asked about ASP breakdown and tariff fallout.

A: Marcus discussed ASP mix, manufacturer actions, and consumer choices.