Camping World Boosts Revenue by 6.8%

Core Insights - Camping World reported an adjusted diluted EPS of -$0.47 for Q4 2024, exceeding analysts' expectations by $0.04, representing a 7.8% beat [2] - Total revenue for the quarter was $1.2 billion, surpassing the expected $1.127 billion, marking an 8.6% year-over-year increase [2][3] - The company faced ongoing challenges in used vehicle sales and weather-related disruptions affecting customer activity [2] Financial Performance - Adjusted EPS for Q4 2024 was -$0.47, compared to -$0.51 estimated and -$0.44 in Q4 2023, reflecting a 6.8% year-over-year improvement [3] - Revenue increased to $1.2 billion from $1.109 billion in Q4 2023, an 8.6% increase [3] - Gross margin improved to 31.3% from 31.0% year-over-year [3] - Adjusted EBITDA improved significantly to -$2.5 million from -$8.9 million in Q4 2023, a 72.1% improvement [3] Sales and Margins - New vehicle sales revenue rose by 10.7% to $497.5 million, driven by an 8% increase in new unit sales [6] - Used vehicle sales increased by 8.2% to $348.1 million, with unit sales up by 11.4% [6] - The average selling price for new vehicles increased by 2.5%, while used vehicle prices declined by 2.8% [7] - New vehicle gross margin decreased by 372 basis points to 15.2%, while used vehicle gross margin increased by 368 basis points [7] - Gross profit grew by 9.7% to $376.9 million, supported by increased finance and insurance gross profit [7] Operational Insights - Operational expenditures, particularly SG&A, rose by 9.1% due to higher employee compensation and advertising expenses [8] - The company is focusing on expanding its Good Sam membership base despite recent declines in active customer numbers, which fell by 9.5%, and a 13.5% decrease in Good Sam Club membership [9] Strategic Focus - Camping World is strategically focused on expanding market share and enhancing profitability through acquisitions, including the integration of seven Lazydays locations [5] - The company aims to optimize its network and leverage Good Sam membership to boost recurring revenue streams [5] - Management anticipates continued revenue growth driven by strategic acquisitions and market share gains, with a focus on increasing RV sales and improving gross margins [10][11]