Camping World, which describes itself as “America’s Recreation Dealer,” has released its most recent financial report, for its 3rd quarter, ending September 30. If recreation is for relief, CW needs a bit more recreation, as Camping World shows declines in a lot of critical areas.
Camping World shows declines particulars
- Revenue was $1.7 billion for the third quarter, a decrease of $126.1 million, or 6.8%.
- New vehicle revenue was $679.2 million for the third quarter, a decline of $154.9 million, or 18.6%; and new vehicle unit sales were 15,205 units, a decrease of 2,411 units, or 13.7%.
- Average selling price of new and used vehicles declined 5.7% and 5.2%, respectively, during the third quarter.
- Products, service and other revenue was $235.6 million for the third quarter, a decline of $33.3 million, or 12.4%.
- Gross profit was $523.1 million, a decrease of $70.6 million, or 11.9%. Total gross margin was 30.2%, a decrease of 175 basis points.
- Net income was $30.9 million, a decrease of $72.1 million, or 70.0%.
Still a bright spot, and more mixed bags
One bright spot for CW: Used vehicle revenue was a record $590.2 million for the third quarter, an increase of $64.2 million, or 12.2%; and used vehicle unit sales were a record 17,125 units, an increase of 2,665 units, or 18.4%.
In an effort to turn around some of the ugliness, since closing out its foul third quarter, CW “made the decision to consolidate or close seven underperforming dealership locations in order to redeploy working capital to higher returning investments.”
Not unexpectedly, Camping World management set out to “fire sale” 2022 and 2023 RVs still on its lots. Since the RV market has taken a major hit, manufacturers started wholesaling new 2024 rigs for less than the prices of those earlier two model years.
The Fed’s dealing with inflation has also gut-punched Camping World. Floor plan interest expense was $19.8 million, an increase of $10.3 million, or 108.9%; and regarding other interest expense, net was $35.2 million, an increase of $14.7 million, or 71.7%.