Core Insights - Camping World, the largest seller of recreational vehicles (RVs), reported third-quarter earnings that exceeded estimates, but the revelation of accounting misstatements from the previous year has raised concerns among investors [1][3][4] Financial Performance - Revenue for the quarter increased by 4.7% to $1.81 billion, surpassing the consensus estimate of $1.75 billion [3] - New-vehicle revenue decreased by 7% to $766.8 million, while used-vehicle revenue rose significantly by 31.7% to $141.9 million [3] - Same-store unit sales grew by 15.6%, indicating positive business momentum [3] - Adjusted EBITDA increased by 28.2% to $95.7 million [3] - Adjusted earnings per share rose from $0.13 to $0.43, exceeding the consensus estimate of $0.32 [4] Accounting Issues - The company identified undercounting of deferred tax assets, necessitating a restatement of the balance sheet from the previous year, which increased deferred tax assets by $43.8 million [4] - Retained earnings were raised by $10.4 million, and additional paid-in capital increased by $33.4 million due to the misstatements [4] Market Reaction - Following the earnings report, shares of Camping World fell by 18.5% as of 9:54 a.m. ET, reflecting investor concerns over the accounting issues and the decline in new vehicle sales [1][5] Future Outlook - The company did not provide guidance for future performance, and the complexity of its financial reporting may hinder the restoration of investor trust, despite the misstatement being relatively minor [5]

Financial Data and Key Metrics Changes - The company reported revenue of over $1.8 billion for Q3 2025, an increase of 5% driven by unit volume increases in used RVs exceeding 30% [12] - Adjusted EBITDA grew over 40% to $95.7 million compared to $67.5 million in the previous year [6][12] - SG&A as a percentage of gross profit improved by 360 basis points year over year [13] Business Line Data and Key Metrics Changes - The company sold nearly 14% of all new and used RVs in North America, indicating strong market penetration [6] - New average selling prices (ASPs) improved sequentially to just under $38,000, a decline of roughly 9% year over year [12] - The used RV sales segment showed significant growth, with expectations for continued high single-digit to low double-digit growth in the coming years [56] Market Data and Key Metrics Changes - The RV industry is experiencing low to mid single-digit declines year over year, with the company anticipating similar trends for its new RV sales [88] - The company has achieved a market share of 13.5%, with a medium-term target of 15% [50][54] Company Strategy and Development Direction - The company aims to improve revenue and earnings while reducing net leverage, with a target adjusted EBITDA floor of around $310 million for 2026 [8] - The strategy includes focusing on used RV sales, service businesses, and Good Sam services as core revenue drivers [11] - The company is investing in AI and technology to enhance operational efficiency and customer experience, which is expected to yield significant cost savings [40][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the new RV market, citing potential resistance due to rising prices and economic uncertainty [7][20] - The company plans to maintain a conservative approach to inventory and sales forecasts, allowing flexibility to adjust based on market conditions [24][65] - Management believes that the used RV business will continue to provide stability and growth opportunities, mitigating risks associated with the new RV market [91] Other Important Information - The company ended the quarter with $230 million in cash, $427 million in used inventory owned outright, and nearly $260 million in real estate without associated mortgages [13][14] - The management team emphasized the importance of maintaining a clean inventory position heading into 2026 [35] Q&A Session Summary Question: What have you seen regarding new RV demand? - Management noted high single-digit declines in the new RV industry, with some stabilization observed earlier in the year, but current trends indicate potential softening due to economic factors [19][20] Question: How do you view the impact of lower rates on unit growth? - Management indicated that while lower rates could help, rising prices may offset any benefits, leading to continued affordability challenges for consumers [26][27] Question: Can you clarify your EBITDA guidance for the year? - Management set a conservative EBITDA floor of $310 million for 2026, with expectations for growth driven primarily by used RV sales [33][64] Question: What is the outlook for M&A activity? - Management is focused on smaller, accretive acquisitions, with a goal to return to a 10% to 15% run rate of acquisitions, depending on market conditions [81][46] Question: What are the average price increases from OEMs for model year 2026? - The average price increase is expected to be around 5% to 7%, with potential for adjustments based on market demand [70][73]

Financial Data and Key Metrics Changes - The company reported revenue of over $1.8 billion for Q3 2025, an increase of 5% driven by unit volume increases in used RVs exceeding 30% [12] - Adjusted EBITDA grew over 40% to $95.7 million compared to $67.5 million in the previous year [6][12] - SG&A as a percentage of gross profit improved by 360 basis points year over year [13] Business Line Data and Key Metrics Changes - The company sold nearly 14% of all new and used RVs in North America, indicating strong market penetration [6] - New average selling prices (ASPs) improved sequentially to just under $38,000, a decline of roughly 9% year over year [12] - The used RV sales segment showed significant growth, with expectations for continued high single-digit to low double-digit growth in the coming years [56] Market Data and Key Metrics Changes - The RV industry is experiencing low to mid single-digit declines year over year, with the company anticipating similar trends for its new RV sales [88] - The company achieved a market share of 13.5%, with a medium-term target of 15% [50][54] Company Strategy and Development Direction - The company aims to improve revenue and earnings while reducing net leverage, with a target adjusted EBITDA floor of around $310 million for 2026 [8] - The strategy focuses on enhancing used RV sales, service, and Good Sam businesses as core differentiators [8][11] - The company is investing in AI and technology to improve operational efficiency and customer experience, which is expected to yield significant cost savings [40][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer sentiment and labor markets, anticipating challenges due to rising OEM pricing and economic uncertainty [7][28] - The company is preparing for a conservative outlook for 2026, emphasizing the importance of maintaining clean inventory and managing cash flow effectively [35][66] Other Important Information - The company ended the quarter with $230 million in cash, $427 million in used inventory owned outright, and nearly $260 million in real estate without an associated mortgage [13][14] - Management highlighted the importance of a conservative approach to inventory and forecasting to avoid miscalculations that could lead to excess inventory [24][66] Q&A Session Summary Question: What have you seen regarding new RV demand? - Management noted high single-digit declines in the new RV industry, with some resistance from consumers due to rising prices and economic uncertainty [19][20] Question: How do you view the impact of lower rates on unit growth? - Management indicated that while lower rates could help, rising prices may offset any benefits, leading to continued affordability challenges [26][27] Question: What are the building blocks to reach the $310 million floor? - Management identified used business growth, cost savings, dealership acquisitions, and new RV sales as key drivers for achieving the target [33][34] Question: What is the outlook for M&A activity? - Management expressed a cautious approach to M&A, focusing on smaller, accretive acquisitions that align with their growth strategy [46][61] Question: How do you see the financing landscape? - Management noted that while short-term rates have dropped, there may be a lag in passing these savings to consumers, with expectations for more significant changes in early 2026 [99]

Financial Data and Key Metrics Changes - The company reported revenue of over $1.8 billion for Q3 2025, an increase of 5% driven by unit volume increases in used RVs exceeding 30% [11] - Adjusted EBITDA grew over 40% to $95.7 million compared to $67.5 million in the previous year [5][11] - SG&A as a percentage of gross profit improved by 360 basis points year over year [12] Business Line Data and Key Metrics Changes - The company sold nearly 14% of all new and used RVs in North America, indicating strong market penetration [5] - New average selling prices (ASPs) improved sequentially to just under $38,000, a decline of roughly 9% year over year [11] - The used RV sales segment showed significant growth, with expectations of yielding approximately $6 million of adjusted EBITDA for every additional 1,000 used units sold [9] Market Data and Key Metrics Changes - The RV industry is experiencing high single-digit declines in new RV sales, while the company has been outperforming the market [19] - The company anticipates entering 2026 with uneven consumer sentiment and rising OEM pricing on like-for-like models [6] Company Strategy and Development Direction - The company aims to improve revenue and earnings while reducing net leverage, with a target adjusted EBITDA floor of around $310 million for 2026 [7] - The strategy focuses on market-leading used sales, service, and Good Sam businesses, with a long-term objective of achieving mid-cycle adjusted EBITDA of $500 million [10] - The company is investing in AI and technology to enhance operational efficiency and customer experience, which is expected to yield significant cost savings [45][47] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the new RV market, acknowledging potential resistance due to rising prices and economic uncertainties [20][31] - The company believes that the used RV market will continue to thrive, providing a buffer against potential declines in new RV sales [22][108] - Management emphasized the importance of maintaining a conservative approach to inventory and forecasting to avoid overstocking [24] Other Important Information - The company ended the quarter with $230 million in cash, $427 million in used inventory owned outright, and nearly $260 million in real estate without an associated mortgage [12][13] - The management team highlighted the significant improvement in the balance sheet and net leverage, aiming to reach a target of 4 or below by the end of 2026 [50] Q&A Session Summary Question: What have you seen regarding new RV demand? - Management noted that while there was some stabilization in the new RV market, they are still seeing year-over-year declines, and consumer resistance to price increases is a concern [19][20] Question: How do you view the building blocks to reach the $310 million floor? - Management indicated that the used business is a significant driver of additional EBITDA, alongside cost savings and dealership acquisitions [38][39] Question: What is the outlook for financing and consumer credit profiles? - The credit profile has remained stable, with expectations that retail lending rates may decrease in the upcoming months [121][124]

Core Insights - Camping World (CWH) reported $1.81 billion in revenue for Q3 2025, a year-over-year increase of 4.7% and a surprise of +0.58% over the Zacks Consensus Estimate of $1.8 billion [1] - The EPS for the quarter was $0.43, significantly higher than $0.13 a year ago, with a surprise of +19.44% compared to the consensus estimate of $0.36 [1] Financial Performance - Unit sales of new vehicles were 20,286, below the average estimate of 22,018 [4] - Average selling price for used vehicles was $31,512, lower than the estimated $32,714.65 [4] - Average selling price for new vehicles was $37,798, exceeding the estimate of $36,053.57 [4] - Unit sales of used vehicles reached 18,694, surpassing the average estimate of 16,267 [4] - Revenue from Good Sam Services and Plans was $52.51 million, slightly below the estimate of $53.55 million, with a year-over-year change of +3.3% [4] - Revenue from RV and Outdoor Retail for new vehicles was $766.78 million, significantly lower than the estimate of $828.85 million, representing a year-over-year decline of -7.1% [4] - Revenue from RV and Outdoor Retail for used vehicles was $589.09 million, exceeding the estimate of $525.01 million, with a year-over-year increase of +31.7% [4] - Revenue from RV and Outdoor Retail for Good Sam Club was $10.81 million, below the estimate of $11.73 million, reflecting a year-over-year change of -0.8% [4] - Revenue from RV and Outdoor Retail Finance and insurance, net, was $178.3 million, slightly above the estimate of $176.24 million, with a year-over-year increase of +7.2% [4] - Total revenue from RV and Outdoor Retail was $1.75 billion, below the estimate of $1.77 billion, with a year-over-year change of +4.8% [4] - Revenue from RV and Outdoor Retail Products, service, and other was $208.63 million, lower than the estimate of $227.9 million, representing a year-over-year decline of -7.2% [4] - Gross profit from RV and Outdoor Retail Products, Service, and Other was $94.21 million, below the average estimate of $108.77 million [4] Stock Performance - Shares of Camping World have returned +1.7% over the past month, compared to the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Revenue for Q3 2025 was $1.8 billion, an increase of $81.1 million, or 4.7% year-over-year[3] - Adjusted EBITDA grew over 40% this quarter, reaching $95.7 million, an increase of $28.2 million, or 41.8%[2][6] - Gross profit was $517.0 million, an increase of $18.5 million, or 3.7%, with total gross margin at 28.6%[6] - The company reported a net loss of $40,438 in Q3 2025, compared to a net income of $5,501 in Q3 2024[19] - Net (loss) income attributable to Camping World Holdings, Inc. for Q3 2025 was $(40,438,000), a decline from $5,501,000 in Q3 2024[42] - Adjusted Net Income Attributable to Camping World Holdings, Inc. – Basic for Q3 2025 was $29,257,000 compared to $7,509,000 in Q3 2024, reflecting a significant increase[42] - Adjusted Earnings Per Share – Basic for Q3 2025 was $0.47, up from $0.17 in Q3 2024, indicating a strong performance improvement[42] - Adjusted Net Income Attributable to Camping World Holdings, Inc. – Diluted for Q3 2025 was $44,279,000, compared to $11,414,000 in Q3 2024[42] - Adjusted Earnings Per Share – Diluted for Q3 2025 was $0.43, compared to $0.13 in Q3 2024, reflecting improved earnings performance[42] Sales and Market Share - Year-to-date market share for new and used units reached a record 13.5%, an improvement of over 200 basis points[2] - Used vehicle revenue increased by $141.9 million, or 31.7%, with unit sales up by 4,629 units, or 32.9%[3] - New vehicle revenue decreased by $58.1 million, or 7.0%, with unit sales increasing by 343 units, or 1.7%[3] - New vehicle sales increased by 1.7% to 20,286 units in Q3 2025, while used vehicle sales surged by 32.9% to 18,694 units[20] - Same store revenue increased by 5.2% to $1,577,467, driven by a 31.6% increase in used vehicle sales[20] - Total unit sales increased by 16.0% to 115,247 vehicles in the nine months ended September 30, 2025, compared to 99,368 vehicles in the same period of 2024[21] - New vehicle unit sales rose by 8.1% to 63,708, while used vehicle unit sales surged by 27.4% to 51,539[21] Expenses and Liabilities - Selling, general and administrative expenses decreased by $3.2 million, or 0.8%, primarily due to lower employee compensation costs[6] - Current liabilities rose to $2,044,824, compared to $1,680,952 in the previous year[24] - SG&A Excluding SBC for Q3 2025 was $403,379,000, a decrease from $408,731,000 in Q3 2024[48] - SG&A for the nine months ended September 2025 was $1,235,945,000, compared to $1,205,358,000 for the same period in 2024, reflecting an increase[48] Inventory and Assets - Total RV and Outdoor Retail inventories rose by 13.7% to $2,026,114, with new vehicle inventories increasing by 5.8%[20] - Total assets increased to $4,998,967 as of September 30, 2025, up from $4,863,277 at the end of 2024[24] - Total number of store locations decreased by 10, or 4.8%, to 197 as of September 30, 2025[6] Cash Flow and Investments - Net cash provided by operating activities was $95,236, a significant decrease from $408,541 in the prior year[25] - The company reported a net cash used in investing activities of $226,071, compared to $57,096 in the prior year[25] Other Financial Metrics - The diluted loss per share for Class A common stock was $(0.64) for Q3 2025, a decrease from earnings of $0.09 per share in Q3 2024[28] - The weighted average shares of Class A common stock outstanding increased to 62,735 in Q3 2025 from 45,232 in Q3 2024[19] - Non-controlling interests accounted for a net loss of $11,087 thousand in Q3 2025, compared to a loss of $2,555 thousand in Q3 2024[28] - The company highlighted the importance of Non-GAAP financial measures, such as Adjusted EBITDA, for evaluating ongoing operating performance and strategic initiatives[29]

Industry Overview - The recreational vehicle (RV) industry experienced a strong demand during the pandemic due to social distancing and remote work, but has faced challenges in recent years due to higher interest rates affecting consumer borrowing costs [1][2] - A potential series of interest rate cuts could make RV stocks more attractive to investors [2] Company Analysis: Thor Industries - Thor Industries has demonstrated resilience with positive sales and earnings growth despite a weak retail environment, aided by flex pricing power and reduced reliance on discounting [4][5] - The company has reduced its debt by nearly $200 million and is positioned for volume recovery as borrowing costs ease [5] - Current stock price is $105.97 with a 12-month forecast of $100.00, indicating a downside of 5.63% [4] Company Analysis: Winnebago Industries - Winnebago reported lower year-over-year revenue and earnings, impacted by tariffs, and expects modest price increases to offset these effects [9][10] - The stock is currently priced at $33.65 with a 12-month forecast of $43.22, suggesting a potential upside of 28.44% [8][9] - The company is undergoing a strategic redesign to expand into Class C motorhomes and the marine segment [10] Company Analysis: Camping World - Camping World reported a strong earnings quarter with a 9.4% revenue increase to $1.98 billion and a 50% increase in EPS year-over-year [11][12] - The stock is currently priced at $16.19 with a 12-month forecast of $21.78, indicating a potential upside of 34.48% [11][13] - Despite recent stock declines, sentiment is shifting positively, with a consensus Moderate Buy rating among analysts [13]

Core Viewpoint - SpartanNash Co, Camping World Holdings Inc, and Sonic Automotive, Inc. are set to trade ex-dividend on September 15, 2025, with respective upcoming dividends announced [1]. Dividend Announcements - SpartanNash Co will pay a quarterly dividend of $0.22 on September 30, 2025 [1]. - Camping World Holdings Inc will pay a quarterly dividend of $0.125 on September 29, 2025 [1]. - Sonic Automotive, Inc. will pay a quarterly dividend of $0.38 on October 15, 2025 [1]. Expected Price Adjustments - Based on the recent stock price of $26.58 for SpartanNash Co, the dividend represents approximately 0.83%, indicating shares may open 0.83% lower on September 15, 2025 [1]. - Camping World Holdings Inc is expected to open 0.74% lower, while Sonic Automotive, Inc. is anticipated to open 0.47% lower, all else being equal [1]. Historical Dividend Stability - Historical dividend data can provide insights into the stability of future dividends, which is crucial for assessing annual yield expectations [7]. - Current estimated annualized yields are 3.31% for SpartanNash Co, 2.97% for Camping World Holdings Inc, and 1.87% for Sonic Automotive, Inc. [7]. Recent Trading Performance - In recent trading, SpartanNash Co shares are down about 0.5%, Camping World Holdings Inc shares are down about 5.5%, and Sonic Automotive, Inc. shares are down about 2.5% [8].

Summary of Camping World (CWH) 2025 Conference Call Company Overview - **Company**: Camping World (CWH) - **Event**: 2025 JPMorgan Automotive Conference - **Date**: August 12, 2025 Key Industry Insights - **Market Share Gains**: Camping World reported over 20% year-over-year growth in both new and used RV units, despite the overall new RV market being down by double digits [3][4][13] - **Sales Strategy**: The company attributes its performance to a contract manufacturing strategy and a focus on entry-level products, rather than heavy discounting [4][5][6] - **Consumer Behavior**: The company is targeting first-time buyers and existing RV owners, emphasizing the importance of monthly payments in consumer decision-making [6][9][10] Financial Performance - **Average Selling Price (ASP)**: The ASP for new RVs was down 10.4% in Q2, but there are signs of recovery with expectations of high single-digit declines for the full year [19][23][34] - **SG&A Improvement**: The company aims for a 600 to 700 basis point improvement in SG&A as a percentage of gross profit, with current expectations adjusted to 300 to 400 basis points due to lower ASPs [23][24][25] - **Headcount Reduction**: The company has reduced its workforce by about 1,000 employees and consolidated 16 locations to improve productivity [25][28][29] Market Outlook - **2026 Projections**: The company anticipates a flat industry performance in 2026, with expectations to continue gaining market share, particularly in the used RV segment [34][35] - **New RV Pricing**: Expected price increases for new RVs in the range of 3% to 6% for model year 2026, influenced by tariffs and market conditions [36][39] - **Interest Rates Impact**: Interest rates are a significant factor affecting consumer purchasing decisions, with RV loans typically having longer durations than light vehicle loans [44][47][49] Competitive Landscape - **Competitor Health**: Competitors are described as "frozen" or "paralyzed" in terms of inventory procurement, which Camping World views as an opportunity to capitalize on market share [66][67][70] - **Acquisition Strategy**: The company has a history of acquiring distressed assets and is looking to continue this strategy while ensuring existing stores perform better [72][79] Capital Allocation - **Debt Management**: The company aims to reduce leverage to 3.9 or below within the next 24 months, focusing on cash generation and debt paydown [74][78] - **Growth Strategy**: Future growth is expected to come from used RV sales, ASP growth, and innovations in the Good Sam business [83][84] Additional Insights - **Good Sam Business**: This segment is crucial for the company's earnings, providing a stable revenue stream through services like roadside assistance and warranties [55][58] - **Market Dynamics**: The installed base of RVs is growing, and the company believes that the trade cycle for RVs has lengthened, which could lead to increased demand as consumers begin to trade in older units [10][41][42] This summary encapsulates the key points discussed during the Camping World conference call, highlighting the company's strategies, market conditions, and financial outlook.

Core Insights - Camping World reported Q2 2025 GAAP revenue of $2.0 billion, exceeding estimates of $1.88 billion, with a year-over-year increase of 9.4% [1][2] - Adjusted diluted EPS was $0.57, missing the expected $0.60, despite a 50% increase from $0.38 in Q2 2024 [1][2] - Vehicle unit sales reached a record 45,602, up 20.7% year-over-year, with significant growth in both new and used RV categories [5][6] Financial Performance - Revenue breakdown: Used vehicle revenue rose 19.0%, while new vehicle sales saw a unit growth of 20.9% but a 10.6% drop in average selling price [5][6] - Adjusted EBITDA was $142.2 million, a 34.7% increase from $105.6 million in Q2 2024 [2] - Total gross margin decreased to 30.0% from 30.3% year-over-year, while SG&A expenses rose by 3.5% to $429.1 million [2][9] Operational Developments - The company reduced its workforce by over 900 employees and closed 16 underperforming stores, leading to a 24.5% decrease in interest expense on floorplan financing [9][10] - New vehicle inventory decreased by 9.9% to $1.33 billion, while used inventory increased by 53.4% to $537 million [11][12] - The divestiture of the RV furniture business contributed to margin improvements in the Products, Service, and Other segment, despite a 5.5% revenue decline in that area [7][12] Strategic Focus - Camping World aims to expand its national dealership network and maximize profits in high-margin services [3][4] - The company targets a high-single digit percentage growth in new unit volumes for FY2025, with average selling prices for new vehicles expected to remain 10-12% below last year [13][14] - Management is focused on improving SG&A as a percentage of gross profit and aims for $500 million or more in adjusted EBITDA [13][14]