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]

Summary of Camping World Holdings Conference Call Company Overview - **Company**: Camping World Holdings (CWH) - **Industry**: Recreational Vehicle (RV) Retail - **Key Executives**: Marcus Lemonis (Chairman and CEO), Matt Wagner (President), Brett Andress (SVP of Corporate Development and Investor Relations) [1][2] Core Business Segments - **RV Dealership Network**: Over 200 locations selling new and used RVs, financing, parts, and services [3] - **Good Sam Business**: Membership club offering roadside assistance, warranty insurance, generating over $150 million in revenue and $100 million in EBITDA [4] Market Share and Performance - **Market Share**: Approximately 20% of new RV sales; recent increase to about 14% of total RV sales including used [5] - **Sales Performance**: Strong performance during Memorial Day weekend, outperforming industry trends which are down mid to high percentage [7] Consumer Trends and Affordability - **Affordability Focus**: Key to success has been identifying price points to drive demand; average selling prices (ASPs) monitored to attract consumers [8][9] - **Interest Rates Impact**: Interest rates and unit costs are critical; the company has been proactive in managing these factors to maintain affordability [10] Used RV Market Strategy - **Used Market Growth**: Increased market share in the used RV segment from 5% to 9% in recent months; long-term goal to combine new and used market share to 15% [27][28] - **Procurement Efficiency**: Developed a system to efficiently procure used RVs, leveraging data from Good Sam and service business [24][33] Financial Outlook - **2025 Guidance**: Low single-digit growth expected in new units, low to mid single-digit growth in used units; maintaining historical margins [39] - **Cost Management**: Focus on reducing fixed costs and improving operational efficiency to achieve 8% EBITDA margins [44] Customer Demographics - **Core Customer Profile**: Predominantly 50-year-old Republicans with household incomes over $100,000 and credit scores around 700 [45] Industry Dynamics - **Market Resilience**: Historically, the number of RVs in circulation has never decreased; the company believes in the stability of the RV lifestyle [16] - **External Factors**: Monitoring interest rates and potential tax benefits for RV loans; optimistic about the used market's growth potential [51][52] Service and Parts Business - **Service Revenue**: Average of $50 million per month in service and parts; potential for growth in customer pay work [62] Conclusion - **Strategic Focus**: Emphasis on used RV market, service business, and maintaining affordability to navigate macroeconomic challenges; cautious approach to M&A with a focus on internal growth [55][56]