Investors hoped to see some sales growth for Camping World in the third-quarter financial report but results were up just 6% to $1.31 billion and weren’t good enough to satisfy even these modest expectations. Some continuing headwinds could remain for the retailer to overcome heading into the end of the year.
Adjusted net income did even worse, falling 20% to $18.2 million, and the resulting adjusted earnings of $0.49 per share was $0.12 per share less than the consensus forecast among investors, reported Motley Fool.
A new corporate structure separated out Camping World’s business into different segments. The largest, vehicle sales, saw sluggish revenue gains of just 0.7%. Vehicle unit sales were higher by 2.3% to almost 28,300, with fairly similar gains in both new and used RVs. However, same-store sales of new RVs fell 4.5%, with motorized RVs suffering a nearly 20% plunge in comps. Average selling prices were also down nearly 3% to around $31,600, with modest gains in used vehicle prices getting outweighed by a 4% decline in new vehicle prices. New vehicle inventory levels were also sharply lower, down 12% with a particularly big drawdown of 38% in motorized unit inventory levels.