Camping World Holdings ((CWH)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Camping World Holdings was marked by a generally positive sentiment, highlighting significant achievements in market share growth and revenue increases. The company expressed a strong outlook for 2025, anticipating explosive EBITDA growth driven by strategic improvements in SG&A and used inventory procurement. However, the call also acknowledged challenges such as higher insurance costs, weather impacts on sales, and potential tariff issues that present obstacles to navigate.
Record Market Share Achievements
Camping World Holdings ended 2024 with a record combined new and used market share of 11.2% and is on track to set a new record of 12% in 2025. The company expects to sell over 130,000 units, up from 121,500 in 2024, showcasing its strong market presence and growth trajectory.
Revenue and Unit Sales Growth
The company reported Q4 revenue of $1.2 billion, marking a 9% increase. This growth was driven by an 8% rise in new unit sales and an 11% increase in used unit sales, reflecting robust demand and effective sales strategies.
Used Inventory Procurement Success
January and February set records for used inventory procurement, with expectations for purchase volume to accelerate as the core selling season approaches. This strategic focus on inventory is expected to support continued sales growth.
Significant SG&A Improvement
Camping World Holdings is targeting a 600 to 700 basis point improvement in SG&A as a percentage of gross profit for the year. This focus on cost efficiency is a key component of the company’s strategy to enhance profitability.
Strong Start to 2025
The year 2025 began on a positive note, with used same-store sales increasing in the high teens during January and new same-store unit sales up in the low single digits, indicating a strong market position.
Explosive EBITDA Growth Expected
The company anticipates explosive EBITDA growth in Q1 2025, driven by improvements in gross margin and profit, alongside significant SG&A enhancements, setting a promising financial outlook.
Insurance Claim Costs
Higher than expected insurance claim costs impacted SG&A for the quarter, resulting in a $6 million hit year over year, highlighting a challenge that the company needs to address.
Weather Impact on Sales
February sales were affected by erratic weather patterns, causing some sales to shift into March. This highlights the external challenges that can impact sales timing and performance.
Potential Tariff Impact
The company anticipates potential increases in new model year prices due to impending tariffs, which could affect new inventory costs and pose a challenge to maintaining competitive pricing.
Pressure on Gross Margins
New vehicle gross margins were pressured due to lower promotional support compared to the previous year, indicating a need for strategic adjustments to maintain margin levels.
Forward-Looking Guidance
Camping World Holdings provided optimistic forward-looking guidance, projecting a revenue increase to $1.2 billion, driven by an 8% rise in new unit sales and an 11% increase in used unit sales. The company aims to achieve a combined new and used market share of 12% in 2025, with unit sales reaching 130,000. Early 2025 results show healthy mid-single-digit growth, and the company plans to add six to seven new rooftops, focusing on strategic acquisitions for growth.
In summary, the Camping World Holdings earnings call conveyed a positive sentiment, with strong market share achievements and revenue growth. The company is poised for significant EBITDA growth in 2025, driven by strategic improvements in SG&A and inventory procurement. While challenges such as insurance costs, weather impacts, and potential tariffs remain, the company’s forward-looking guidance suggests a promising outlook for continued growth and profitability.