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CW

Camping World Holdings, Inc. (CWH)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue grew to $1.41B (+3.6% y/y), with adjusted EBITDA nearly quadrupling to $31.1M on stronger used volume and margin; GAAP diluted EPS was $(0.21) versus $(0.51) last year .
  • Used unit sales rose 30.3% (13,939 units) and used gross margin expanded 104 bps to 18.6%; new unit sales were essentially flat (-0.9%) with new gross margin at 13.7% amid lower ASPs .
  • Management reaffirmed “guideposts”: low double-digit growth in used, low single-digit in new, vehicle margins within historical ranges, and a 600–700 bps improvement in SG&A as a percentage of gross profit; April-to-date trends were stronger (used high-teens, new high-single digits) .
  • Versus consensus: revenue slightly missed ($1.41B vs $1.424B*), adjusted EBITDA beat ($31.1M vs $28.0M*), and GAAP EPS was in line (−$0.21 vs −$0.204*) (Values retrieved from S&P Global).
  • Potential stock catalysts: accelerating used momentum and market share, tangible SG&A reductions (~$35M annualized), and limited tariff impact narrative; balance-sheet deleveraging is a medium-term focus .

What Went Well and What Went Wrong

What Went Well

  • Used vehicles: units +30.3% y/y to 13,939; gross margin +104 bps to 18.6% driven by lower average cost per unit and strong procurement velocity .
  • Adjusted EBITDA: improved to $31.1M (+278% y/y), supported by used strength and higher F&I gross profit (+$13.2M) .
  • Market share and demand signals: combined new+used share hit record levels; April-to-date same-store unit sales up high teens (used) and high single digits (new), despite tariff headlines .

What Went Wrong

  • ASP pressure: average selling prices declined 4.4% (new) and 4.0% (used), modestly weighing new margin and total front-end yield .
  • Good Sam Services margin compressed 511 bps to 61.6% due to higher roadside assistance claim costs .
  • SG&A rose 4.3% (+$16.0M) on higher compensation and advertising, though actions at quarter-end target ~$35M annualized reductions going forward .

Financial Results

Headline comparisons (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Total Revenue ($USD Millions)$1,725.0 $1,204.5 $1,413.5
GAAP Diluted EPS ($)$0.09 $(0.56) $(0.21)
Adjusted EBITDA ($USD Millions)$67.5 $(2.5) $31.1
Total Gross Margin (%)28.9% 31.3% 30.4%
New Vehicle Gross Margin (%)13.5% 15.2% 13.7%
Used Vehicle Gross Margin (%)18.2% 18.7% 18.6%

Segment breakdown (Q1 2024 vs Q1 2025)

Segment Revenue ($USD Millions)Q1 2024Q1 2025
New Vehicles$656.1 $621.4
Used Vehicles$337.7 $422.4
Products, Service & Other$177.9 $165.0
Finance & Insurance, net$135.5 $148.7
Good Sam Services & Plans$45.7 $46.2
Good Sam Club$11.2 $9.9
Total Revenue$1,364.0 $1,413.5

KPIs (Q1 2024 vs Q1 2025)

KPIQ1 2024Q1 2025
Unit Sales – New16,882 16,726
Unit Sales – Used10,694 13,939
ASP – New ($)38,863 37,154
ASP – Used ($)31,577 30,300
Same-Store Units – New16,116 15,791
Same-Store Units – Used10,239 13,157
Front-End Yield ($gp/unit)$10,359 $10,179
F&I GP as % Total Vehicle Revenue13.6% 14.2%
Inventory Turnover – New1.7x 1.8x
Inventory Turnover – Used3.0x 3.5x
Retail Locations215 209

Results vs Wall Street consensus (S&P Global, Q1 2025)

(Values retrieved from S&P Global)

MetricConsensus*ActualBeat/Miss
Revenue ($USD Millions)1,424.4*1,413.5 Miss (−$10.9M)
Adjusted EBITDA ($USD Millions)28.0*31.1 Beat (+$3.1M)
GAAP Primary EPS ($)−0.204*−0.21 In line

Guidance Changes

Metric/TopicPeriodPrevious GuidanceCurrent GuidanceChange
Used Unit GrowthFY 2025“Meaningful recovery… in excess of low double digits” “Growth in excess of low double digits” Maintained
New Unit GrowthFY 2025“Modest growth in new units” “Low single digits” Clarified/maintained
Vehicle Gross MarginsFY 2025Within historical ranges Within historical ranges Maintained
SG&A as % of Gross ProfitFY 2025Improve mid–high single digits Improve 600–700 bps Raised specificity
ASP trajectoryFY 2025“Modestly increasing y/y” Start-of-year ASPs lower than anticipated; expect improvement later in year Near-term lowered
Model Year ’26 PricingCY 2026 modelsN/AMid-single-digit price increases expected; fringe categories possibly higher New expectation
DividendQ1 2025N/A$0.125 per share declared; paid Mar 27, 2025 Declared
Dividend PolicyOngoingBoard discretion based on multiple factors Reiterated Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
ASPs & AffordabilityASPs declined y/y; affordability focus ASPs modestly increased in Q4 new; planning for stability in 2025 ASPs softer to start the year; managing mix and SG&A; expect improvement into Q2–Q4 Near‑term pressure, improving later
Used Procurement & VelocityPreparing for recovery in used volume; procurement discipline Momentum to start 2025; used same-store high-teens in Jan Record procurement in Mar/Apr; strong same-store used comps Strengthening
SG&A DisciplineSG&A flat to down slightly sequentially Cost discipline emphasized for 2025 ~$35M annualized cuts announced; store consolidations Improving
Market ShareRecord new share; combined volume positive Green shoots; stability expected Record combined new+used share YTD; Coleman #1 travel trailer by units Strengthening
Tariffs & PricingN/AN/ALimited demand impact; MY’26 pricing mid-single digits Manageable
Lenders & RatesN/AN/ACredit availability stable; retail rates down ~75 bps y/y; RV paper performs Supportive
M&A & FootprintGrowth company; white space Positioned for inorganic growth Consolidated six markets; opportunistic M&A, improve sales per rooftop Portfolio optimization

Management Commentary

  • “We made the commitment at the beginning of the year to sell more units and make more money.”
  • “We have not seen any discernable impacts on consumer behavior from tariffs, with our April-to-date same store unit sales tracking up mid-teens on used and up high-singles on new.”
  • “We took action at the end of the quarter to eliminate roughly $35 million of annualized SG&A through a combination of headcount, marketing and contract cost reductions.”
  • “Our momentum in new and used unit sales has extended far beyond March with April to date used same-store unit sales up high teens and with new unit sales up high single digits.”
  • “We ended the quarter with about $179 million of cash, including approximately $158 million of cash in the floor plan offset account.”
  • “We expect the direct tariff impact to the broader RV industry to be relatively immaterial with new model year '26 pricing up… mid-single digits.”

Q&A Highlights

  • ASP dynamics: softness driven more by mix and affordability strategy than promotions; new margins held within historical ranges while competitors got more aggressive .
  • Tariffs/model-year pricing: MY’26 price increases expected in mid-single digits; no demand pull-forward observed; contract manufacturing and used inventory provide affordability levers .
  • Leverage and balance sheet: goal to be ≤3.5x (preferably ~3x) over time; delever through results and asset sales; ample liquidity and credit availability .
  • Store footprint and M&A: consolidations in six markets accretive to margins via higher sales per rooftop; opportunistic deals with returns target back to ~19–20% .
  • Lender environment: rates ~75 bps lower y/y for retail consumer; lenders stable to more aggressive, supported by strong RV credit performance (avg FICO >700; income >$100k) .

Estimates Context

  • Revenue: slight miss vs consensus ($1.4135B actual vs $1.4244B*).
  • Adjusted EBITDA: beat vs consensus ($31.1M actual vs $28.0M*).
  • GAAP EPS: essentially in-line (−$0.21 actual vs −$0.204*).
    Values retrieved from S&P Global.

Key Takeaways for Investors

  • Used vehicles are the near-term growth engine: volume +30% and margin +104 bps; procurement velocity and consignment strategy underpin supply and capital efficiency .
  • SG&A actions are tangible and continuing: ~$35M annualized reductions and footprint consolidation should improve profitability and sales per rooftop into H2 .
  • Affordability first strategy: ASP pressure in Q1 reflects mix; management expects improvement across Q2–Q4, using contract manufacturing and used offerings to fill key payment “boxes” .
  • Good Sam margin compression is transitory: claim costs elevated; investments intended to stabilize margins and support earnings later in 2025 .
  • Liquidity and deleveraging path: stable lender appetite, lower retail rates, and focus on asset monetization give flexibility; deleveraging is a priority .
  • Tariff narrative is manageable: MY’26 price increases expected mid-single digits; limited demand impact to date, with used acting as a buffer .
  • Dividend continuity observed in Q1 (paid $0.125), with future payments at Board discretion; capital allocation focused on earnings growth and leverage reduction .