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CW

Camping World Holdings, Inc. (CWH)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue rose 8.6% year-over-year to $1.20B on combined unit growth (+9.6%), while diluted EPS was $(0.56); gross margin expanded 33 bps to 31.3% as used margins recovered and F&I grew .
  • Positive surprises included used vehicle gross margin up 368 bps and F&I gross profit up $17.1M, offset by new vehicle margin pressure (-372 bps) and higher SG&A (+9.1%), including ~$6M elevated health insurance claims .
  • Management reaffirmed 2025 “guideposts”: 10–15% used unit growth, low single-digit new growth, new gross margin 13.5–14%, used gross margin ~19%, and 600–700 bps SG&A improvement; expects “explosive” Q1 EBITDA (3–4x last year’s $8M) and >130,000 units sold for 2025, targeting 12% market share .
  • Strategic catalysts: $2.150B floor plan facility extension (+$300M) to fund used procurement and M&A , and a $0.125 Q1 dividend declaration ; watch tariff-related pricing and a newly identified internal control material weakness (tax deferred asset measurement) disclosed in the 8-K .

What Went Well and What Went Wrong

  • What Went Well

    • Combined new/used same-store unit sales increased for the second straight quarter; total units +9.6% YoY to 22,148 and revenue +8.6% YoY to $1.20B .
    • Used margin recovery (+368 bps) and F&I strength (+$17.1M) drove gross profit +$33.5M YoY, and adjusted EBITDA loss narrowed to $(2.5)M from $(8.9)M .
    • Management confidence: “We have 2 goals for the year. It’s very simple, sell more RVs and make more money.” and expects “explosive EBITDA growth” in Q1 (3–4x YoY) .

  • What Went Wrong

    • New vehicle gross margin fell 372 bps on lower manufacturer incentives, mix shift to motorized units, and slightly higher cost of 2025 models .
    • SG&A rose 9.1% YoY (+$30.7M), driven by compensation (incl. ~$6M health insurance claims) and +$6.3M advertising; SG&A ex-SBC +9.3% .
    • Accounting/internal controls: revisions for immaterial errors and a new material weakness identified related to measurement of an outside basis deferred tax asset in CWGS, LLC; prior-period corrections detailed in 8-K .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Billions)$1.806 $1.725 $1.204
Diluted EPS ($USD)$0.22 $0.09 $(0.56)
Net Income ($USD Millions)$23.4 $8.1 $(59.5)
Total Gross Margin %30.3% 28.9% 31.3%
Adjusted EBITDA ($USD Millions)$105.6 $67.5 $(2.5)

Segment revenue mix (Q4 2024 vs Q4 2023):

Revenue Category ($USD Millions)Q4 2023Q4 2024
New vehicles$449.4 $497.5
Used vehicles$321.7 $348.1
Products, service & other$179.0 $181.4
Finance & insurance, net$101.9 $119.0
Good Sam Services & Plans$46.5 $45.5
Good Sam Club$10.8 $12.9
Total revenue$1,109.3 $1,204.5

Key KPIs across quarters:

KPIQ2 2024Q3 2024Q4 2024
Total units sold37,784 34,008 22,148
New units22,084 19,943 11,575
Used units15,700 14,065 10,573
ASP – New ($)$38,358 $41,364 $42,983
ASP – Used ($)$30,623 $31,798 $32,928
F&I per vehicle unit ($)$4,738 $4,889 $5,373
Total vehicle front-end yield ($)$10,577 $10,551 $11,728
Active Customers4,762,376 4,615,443 4,487,313
Good Sam Club members1,880,126 1,804,334 1,753,798

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total units soldFY 2025Not specified“>130,000 units” and 12% market share target New detail
New unit growthFY 2025Modest growth Low single-digit growth Clarified
Used unit growthFY 2025“In excess of low double digits” 10%–15% Clarified
New vehicle gross margin %FY 2025Within historical range 13.5%–14% Specified
Used vehicle gross margin %FY 2025Not specified~19% average New detail
SG&A vs gross profit (improvement)FY 2025Mid-to-high single digits 600–700 bps Raised/precise
Q1 EBITDA outlookQ1 2025Not provided“Explosive,” 3–4x YoY vs $8M in Q1’24 New
Floor plan facilityCurrent$1.85B prior capacity$2.150B capacity (+$300M), accordion +$300M Raised
DividendQ1 2025Prior cadence varies$0.125 per share declared Maintained/Resumed

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Interest rates & ASPsMacro caution, cost actions —10-year yield down ~50–100 bps YoY supports ASP uplift and affordability cadence across seasons Improving tailwind
Used procurement & marketplaceBeginning to ramp used stocking, cautious on aging Expect used volume recovery low double digits in 2025 Record used procurement in Jan/Feb; expect double-digit same-store used units in Feb Strengthening
Tariffs/mix/pricing——Potential 3–5% invoice price increases; advantage from scale and used spread; likely de-contenting by OEMs Manageable risk, relative advantage
M&A, capacity & leverageCost optimization, location optimization Positioned for dealership M&A and organic growth $2.150B floor plan; 6–7 net dealership adds targeted; focus on deleveraging and NOI per rooftop Expansion with delever focus
Good Sam/services—Differentiator through cycles ~$95M EBITDA in 2024; claims costs expected to normalize; product/services growth Improving
Market shareRecord new unit share Record new unit share; combined units up Record combined market share 11.2%; targeting 12% in 2025 Increasing
Controls/tax DTA——New material weakness disclosed; corrections to prior periods New watch item

Management Commentary

  • “We have 2 goals for the year. It’s very simple, sell more RVs and make more money.”
  • “It’s my expectation that our company will experience explosive EBITDA growth in the first quarter compared to the prior year… no less than 3x, 3 to 4x on that number.”
  • “We are reaffirming our guidepost to deliver 10%-to-15%-unit growth on used, low single-digit growth on new… and a 600 to 700 basis point improvement in SG&A.”
  • “We expect to set a new record at 12% [market share], selling over 130,000 units, up from 121,500 in 2024.”
  • “Manufacturers will probably be looking at raising prices… maybe about 3%… that enables us to further pivot into the used marketplace… the spread between new and used is going to be that much more substantial.”

Q&A Highlights

  • ASPs and rates: Lower retail finance rates vs a year ago (~50–100 bps) improve affordability and ASPs seasonally; ASP targets $40k new / $32k used for 2025 .
  • SG&A improvement: Plan includes reductions in force and ongoing tightening; committed to 600–700 bps improvement in SG&A vs gross profit “come hell or high water” .
  • Green shoots: Better foot traffic, lead conversion, cleaner inventory across industry; used values rising suggest consumers holding units, supporting margins .
  • Margin expectations: New GM 13.5–14%; used GM ~19% for full year; manufacturer support lower YoY vs Q4’23 .
  • M&A and leverage: Expect each 2025 acquisition to be EBITDA accretive; strong balance sheet liquidity; priority to reduce leverage by year-end 2025 .

Estimates Context

  • We attempted to retrieve S&P Global consensus for Q4 2024 revenue and EPS but were unable to access due to daily request limits. As a result, we cannot formally assess beats/misses vs Wall Street consensus for Q4 2024 at this time [GetEstimates errors].
  • Management reaffirmed that guideposts (new/used growth, margin expectations, SG&A improvement) align with “where the Street is,” but did not provide explicit numeric EPS/EBITDA guidance .

Key Takeaways for Investors

  • Sequential improvement set-up: Used margin recovery and F&I strength, coupled with SG&A discipline, positions Q1 2025 for material EBITDA expansion (3–4x YoY) .
  • Volume-led story: Same-store unit growth now broadening, with early 2025 momentum and >130k units targeted; combined market share goal of 12% is a visible KPI .
  • Mix and pricing: New margin headwinds offset by stronger used economics and F&I; focus on affordability and exclusive brands supports share gains .
  • Balance sheet capacity: $2.150B floor plan facility adds runway for used procurement and M&A, with an explicit deleveraging goal in 2025 .
  • Income return: $0.125 dividend declared for Q1 2025 offers cash yield amid earnings recovery trajectory .
  • Risk monitoring: Track tariff impacts on OEM pricing, potential pass-throughs, and the newly disclosed material weakness in tax-related controls .
  • Tactical positioning: The company’s scale and contract manufacturing provide cost advantages likely to widen spreads between new and used, aiding margin and conversion .