Camping World (CWH) 2025 Conference Transcript

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]