Camping World Earnings Call Balances Cuts And Headwinds

Camping World Holdings ((CWH)) has held its Q1 earnings call. Read on for the main highlights of the call.

Camping World Holdings’ latest earnings call carried a cautiously optimistic tone as management balanced solid operational gains against a still-tough RV market. Executives pointed to cost cuts, leaner inventories, stronger exclusive-brand share and better cash generation as building blocks for EBITDA and free‑cash‑flow growth, while acknowledging ongoing margin pressure, Q1 volatility and industry softness through at least the second quarter.

Resilient Revenue and Pricing Amid Softer Volumes

Camping World reported Q1 revenue of $1.35 billion, with higher average selling prices and a richer mix helping to cushion lower unit volumes. New vehicle ASPs rose roughly 4% year over year, underscoring the company’s ability to hold pricing and push higher-value product even as retail demand remains uneven.

SG&A Cuts Drive Efficiency Gains

Management leaned hard on cost control, trimming SG&A by more than $29 million, or about 7.5%, compared with last year. SG&A as a percentage of gross profit improved by 135 basis points, aided by $19 million in compensation reductions, 13 store consolidations and an extra $10 million of annualized cost rationalization, bringing year‑to‑date savings to roughly $35 million.

Inventory Discipline Supports Margins and Cash

The company continued to pull back inventory, with same‑store RV units down more than 10% year over year and purchases over 20% lower so far this year. New 2025 model inventory is about 8% of total new units and down more than 50% in unit terms versus a year ago, yet April daily sales velocity was positive versus last year, showing the business can drive sales without overstocking.

Exclusive Brands Fuel New Unit Share Gains

Camping World’s new unit sales outpaced the broader RV industry, with Fifth Wheel segment sales up nearly 10% year to date. Management credited private‑label and exclusive brands that hit attractive price points and feature sets, supporting share gains and reinforcing the strategy of leaning into differentiated, margin‑accretive product.

Good Sam Stabilizes While Tech Upgrades Advance

Good Sam delivered continued top‑line growth with roughly flat margins year over year, marking welcome stabilization in a key recurring‑revenue business. An enterprise resource planning overhaul is slated to finish in the second quarter and, alongside an in‑house AI‑enabled CRM that is already boosting productivity and conversions, is expected to open new marketplace and cross‑sell opportunities.

Balance Sheet Strengthens on Cash Build and Debt Paydown

The company ended the quarter with about $200 million of cash and improved net leverage to 5.6 times from 8.1 times a year earlier. Camping World paid down $56 million of debt in the quarter and showed much better operating and investing cash flows, driven by tighter inventory turns and restrained capital spending.

Adjusted EBITDA Slides on Gross Margin Pressure

Despite the expense work, Q1 adjusted EBITDA fell to $28.0 million from $31.2 million in the prior year, a drop of about 10.3%. Management emphasized that the decline was largely due to gross profit pressure rather than overhead, highlighting how lower vehicle margins are currently overshadowing the SG&A progress.

Vehicle Gross Margins Under Near-Term Pressure

New vehicle gross margin declined 148 basis points to 12.2%, while used vehicle gross margin slipped 91 basis points to 17.7%. Executives warned that margin pressure will likely persist through the second quarter before easing and improving in the back half of 2026 as inventory normalization, mix, and pricing actions gain traction.

Q1 Volatility and Used Sales Softness

Same‑store used RV sales were down 2.6% in the quarter, with management blaming severe winter weather that shut more than 60 stores for at least a day and likely cost about 1,500 unit sales. Leaders framed the quarter as unusually volatile and not fully indicative of typical seasonal patterns, suggesting some pent‑up demand could shift into later periods.

Industry Headwinds and Macro Uncertainty

The broader new RV market remains under pressure, with industry data tracking retail declines in excess of 15% through February. Camping World expects the new RV industry to finish near the low end of its 325,000 to 350,000 unit outlook and noted a promotional environment and geopolitical and macro uncertainties that could keep demand choppy.

Execution Gaps in Partnerships and Service

Not all initiatives are firing yet, with management citing a slower‑than‑planned ramp in its Costco partnership, which is not included in current guidance. Parts and service work for external customers also needs improvement, and certain benefits from inventory turn and replenishment will be gradual, leaving execution risk in key growth and margin levers.

Leverage Still Elevated Despite Progress

While leverage metrics have improved, management acknowledged that net leverage at 5.6 times remains high and is a near‑term focus. Achieving the targeted leverage trajectory hinges on hitting full‑year earnings goals and keeping net capital expenditures below $100 million, with maintenance spending expected closer to $75 million.

Guidance and Outlook: Cost Actions Versus Soft Industry

Management reiterated full‑year 2026 adjusted EBITDA guidance of $275 million to $325 million and continues to expect year‑over‑year EBITDA growth despite the Q1 dip. The outlook assumes the RV industry tracks near the low end for new units and mid‑range for used, with margin pressure through Q2, improving in the second half as cost cuts, inventory discipline, Good Sam, and AI‑driven efficiencies bolster profitability and free cash flow.

Camping World’s call painted a picture of a retailer steadily tightening its own ship while steering through a rough RV cycle, giving investors both reasons for patience and for cautious confidence. Cost savings, inventory control and tech investment are moving in the right direction, but near‑term vehicle margins, elevated leverage and industry headwinds mean execution in 2026 will be critical for the bullish guidance to hold.