Camping World Holdings, Inc. Reports Fourth Quarter 2024 Results, New and Used Same Store Unit Sales Increase, 22,148 Total Units Sold, Operational Improvement Continues Into the First Quarter

Camping World Holdings, Inc. (NYSE:CWH) (the "Company" or "CWH"), the World's Largest Recreational Vehicle Dealer, today reported results for the fourth quarter and full year ended December 31, 2024.

Marcus Lemonis, Chairman and Chief Executive Officer of CWH stated, "Our combined new and used same store unit sales grew for the second quarter in a row, with increased revenue, increased gross profit and improved adjusted EBITDA, a testament to our unwavering focus on product development, affordability, and used inventory procurement. We see green shoots unfolding across the broader RV landscape, supporting our expectation for more stable industry trends throughout 2025."

Matthew Wagner, President of CWH commented, "We are very pleased with our momentum to start 2025. Our same store used unit trends increased high-teens percentages year-over-year in January, and same store new units increased low-singles, in line with our expectations. This early season performance gives us confidence in achieving the 2025 guideposts that we provided on our last call."

Mr. Lemonis concluded, "The organization is positioned exceptionally well for organic and inorganic growth in 2025. Our focus rests solely on selling more RVs, cost discipline, and driving significantly improved profitability across our enterprise."

Fourth Quarter-over-Quarter Operating Highlights

• Revenue was $1.2 billion for the fourth quarter, an increase of $95.1 million, or 8.6%.
• New vehicle revenue was $497.5 million for the fourth quarter, an increase of $48.1 million, or 10.7%, and new vehicle unit sales were 11,575 units, an increase of 858 units, or 8.0%. Used vehicle revenue was $348.1 million for the fourth quarter, an increase of $26.5 million, or 8.2%, and used vehicle unit sales were 10,573 units, an increase of 1,081 units, or 11.4%. Combined new and used vehicle unit sales were 22,148, an increase of 1,939 units, or 9.6%.
• Average selling price of new vehicles sold increased 2.5% and average selling price of used vehicles sold decreased 2.8%.
• Same store new vehicle unit sales increased 4.5% for the fourth quarter and same store used vehicle unit sales increased 4.0%. Combined same store new and used vehicle unit sales increased 4.2%.
• Products, services and other revenue was $181.4 million, an increase of $2.4 million, or 1.4%, driven largely by the increase in used vehicles sold leading to an increase in retail product attachment to vehicle sales as used vehicles experience higher retail product attachment than new vehicles, which was partially offset by the divestiture of our RV furniture business in May 2024.
• New vehicle gross margin was 15.2%, a decrease of 372 basis points, driven primarily by a slightly higher mix of class B and C motorized units in 2024, lower manufacturer promotional incentives, and slightly higher cost of 2025 model year new vehicles, partially offset by the 2.5% higher average selling price. Used vehicle gross margin was 18.7%, an increase of 368 basis points, as a result of the discounting of higher-cost used vehicles in the fourth quarter of 2023, partially offset by the 2.8% lower average selling price.
• Gross profit was $376.9 million, an increase of $33.5 million, or 9.7%, and total gross margin was 31.3%, an increase of 33 basis points. The gross profit increase was mainly driven by $17.1 million higher finance and insurance, net ("F&I") gross profit largely from the 9.6% increase in combined new and used vehicle unit sales and new F&I offerings, $16.8 million higher used vehicle gross profit from the increase in used vehicle unit sales and gross margin as discussed above, and $11.1 million higher products, service and other gross profit as a byproduct of the higher used vehicle sales and higher gross margins from the divestiture of our RV furniture business in May 2024. These gross profit increases were partially offset by lower gross margins from new vehicles as discussed above.
• Selling, general and administrative expenses ("SG&A") were $367.8 million, an increase of $30.7 million, or 9.1%. This increase was primarily driven by $26.2 million of increased employee compensation costs excluding equity-based compensation and including commissions, due in part to an over $6.0 million increase in health insurance claim costs, and $6.3 million of additional advertising expenses. SG&A Excluding Stock-Based Compensation⁽¹⁾ ("SBC") was $362.4 million, an increase of $30.7 million, or 9.3%.
• Floor plan interest expense was $17.1 million, a decrease of $4.7 million, or 21.6%, and other interest expense, net was $32.3 million, a decrease of $3.1 million, or 8.7%. These decreases were primarily as a result of lower interest rates, and, to a lesser extent, lower principal balances.
• Net loss⁽²⁾ was $(59.5) million for the fourth quarter of 2024, a decrease of $12.0 million, or 25.1%. Adjusted EBITDA⁽¹⁾ was $(2.5) million, an increase of $6.4 million, or 72.1%.
• Diluted loss per share of Class A common stock⁽²⁾ was $(0.56), a decrease of $0.10, or 21.7%. Adjusted loss per share – diluted^{(1) (2)} of Class A common stock was $(0.47), a decrease of $0.03, or 6.8%.
• The total number of our store locations was 206 as of December 31, 2024, a net increase of four store locations from December 31, 2023, or 2.0%.

Full Year-over-Year Operating Highlights

• Revenue was $6.1 billion, a decrease of $126.5 million, or 2.0%.
• New vehicle revenue was $2.8 billion, an increase of $249.4 million, or 9.7%, and new vehicle unit sales were 70,484 units, an increase of 11,753 units, or 20.0%. Used vehicle revenue was $1.6 billion, a decrease of $365.8 million, or 18.5%, and used vehicle unit sales were 51,032 units, a decrease of 5,791 units, or 10.2%. Combined new and used vehicle unit sales were 121,516, an increase of 5,962 units, or 5.2%.
• Average selling price of new vehicles declined 8.6% driven primarily by the lower cost of 2024 model year travel trailers and discounting of pre-2024 model year new vehicles. Average selling price of used vehicles declined 9.2% due to discounting of used vehicles in response to declines in new vehicle prices.
• Same store new vehicle unit sales increased 15.0% and same store used vehicle unit sales decreased 14.6%. Combined same store new and used vehicle unit sales were relatively flat at an increase of 0.3%.
• Products, services and other revenue was $820.1 million, a decline of 49.9 million, or 5.7%, driven largely by a reduction in sales activity resulting from our Active Sports Restructuring, the divestiture of our RV furniture business in May 2024, and fewer used vehicles sold leading to a decline in retail product attachment to vehicle sales as used vehicles experience higher retail product attachment than new vehicles.
• Gross profit was $1.8 billion, a decrease of $53.2 million, or 2.8%, and total gross margin was 29.9%, a decrease of 25 basis points. The gross profit decline was mainly driven by the lower average selling prices on new and used vehicles, which was partially offset by the lower average cost of new and used vehicles, and a nonrecurring $5.5 million in savings from finalizing contract negotiations to exit an arrangement with a service partner for Good Sam Services and Plans in 2023. These decreases were partially offset by improved gross margins for products, services and other driven largely by the divestiture of our RV furniture business in May 2024.
• SG&A was $1.6 billion, an increase of $34.1 million, or 2.2%. This increase was primarily driven by $29.4 million of additional advertising expenses, and $7.3 million of additional employee compensation costs, consisting of a $9.3 million increase in employee cash compensation expenses, partially offset by a $2.0 million decrease in SBC expenses. SG&A Excluding SBC⁽¹⁾ was also $1.6 billion, an increase of $36.1 million, or 2.4%.
• Floor plan interest expense was $95.1 million, an increase of $12.0 million, or 14.5%, and other interest expense, net was $140.4 million, an increase of $5.2 million, or 3.8%. These increases were primarily a result of higher principal balances and higher average interest rates.
• Net loss⁽²⁾ was $(78.9) million, a change of $131.8 million from net income of $52.9 million in 2023. Adjusted EBITDA⁽¹⁾ was $178.8 million, a decrease of $107.4 million, or 37.5%.
• Diluted loss per share of Class A common stock was $(0.80), a change of $1.37 from $0.57 in diluted earnings per share of Class A common stock⁽²⁾ in 2023. Adjusted loss per share – diluted⁽¹⁾ of Class A common stock was $(0.40), a change of $1.24 from $0.84 in adjusted earnings per share – diluted of Class A common stock⁽²⁾ in 2023.

Revisions for Correction of Immaterial Errors

The Company corrected for errors that were immaterial to previously-reported consolidated financial statements. These errors were identified in connection with the preparation of the financial statements for the year ended December 31, 2024 and related primarily to the measurement of the realizable portion of the Company's outside basis difference deferred tax asset in the operating partnership, CWGS Enterprises, LLC ("CWGS, LLC"). The Company evaluated the materiality of these errors both qualitatively and quantitatively in accordance with Staff Accounting Bulletin ("SAB") No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements, and determined the effect of these corrections was not material to the previously issued financial statements. However, correcting the cumulative error during the year ended December 31, 2024 would have been material to the current period. Therefore, the amounts in the previous periods have been revised to reflect the correction of these errors. The Company expects to disclose in its Annual Report on Form 10-K that, as part of its evaluation of its internal control over financial reporting, the Company identified a new material weakness in its internal controls that existed as of December 31, 2024, specifically related to the review of the measurement of the realizable portion of the Company's outside basis difference deferred tax asset in CWGS, LLC, which pertained to these revisions.

The following table presents the effect of the error correction on the Company's consolidated balance sheet for the period indicated:

The following table presents the effect of the error corrections on the consolidated statements of income for the periods indicated:

The error corrections did not change net cash provided by operating activities or any investing or financing activities in the summary of consolidated statements of cash flows for the year ended December 31, 2023.

Earnings Conference Call and Webcast Information

A conference call to discuss the Company's fourth quarter 2024 financial results is scheduled for February 26, 2025, at 7:30 am Central Time. Investors and analysts can participate on the conference call by dialing 1-844-826-3035 (international callers please dial 1-412-317-5195) and using conference ID# 10196901. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company's website at http://investor.campingworld.com. The replay of the conference call webcast will be available on the investor relations website for approximately 90 days.

Presentation

This press release presents historical results for the periods presented for the Company and its subsidiaries, which are presented in accordance with accounting principles generally accepted in the United States ("GAAP"), unless noted as a non-GAAP financial measure. The Company's initial public offering and related reorganization transactions that occurred on October 6, 2016 resulted in the Company as the sole managing member of CWGS, LLC, with sole voting power in and control of the management of CWGS, LLC. As of December 31, 2024, the Company owned 61.0% of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements. Unless otherwise indicated, all financial comparisons in this press release compare our financial results for the fourth quarter and full year ended December 31, 2024 to our financial results from the fourth quarter and full year ended December 31, 2023, respectively.

About Camping World Holdings, Inc.

Camping World Holdings, Inc., headquartered in Lincolnshire, IL, (together with its subsidiaries) is the world's largest retailer of RVs and related products and services. Through Camping World and Good Sam brands, our vision is to build a business that makes RVing and other outdoor adventures fun and easy. We strive to build long-term value for our customers, employees, and stockholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry's most extensive online presence and a highly trained and knowledgeable team of associates serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of highly specialized services and plans, including roadside assistance, protection plans and insurance, uniquely enables us to connect with our customers as stewards of an outdoor and recreational lifestyle. With RV sales and service locations in 43 states, Camping World has grown to become the prime destination for everything RV. For more information, visit www.CampingWorld.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements about macroeconomic and industry trends, inventory strategy, business plans and goals, future growth of our operations, including organic and inorganic growth, and future financial results and position. These forward-looking statements are based on management's current expectations.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: general economic conditions, including inflation, interest rates and tariffs; the availability of financing to us and our customers; fuel shortages, high prices for fuel or changes in energy sources; the success of our manufacturers; changes in consumer preferences; competition in our industry; risks related to acquisitions, new store openings and expansion into new markets; our failure to maintain the strength and value of our brands; our ability to manage our inventory; fluctuations in our same store sales; the cyclical and seasonal nature of our business; our dependence on the availability of adequate capital and risks related to our debt; our ability to execute and achieve the expected benefits of our cost cutting initiatives; our reliance on our fulfillment and distribution centers; impacts from natural disasters, including pandemics and health crises; our dependence on our relationships with third party suppliers and lending institutions; risks associated with selling goods manufactured abroad; our ability to retain senior executives and attract and retain other qualified employees; risks associated with leasing substantial amounts of space; risks associated with our private brand offerings; we may incur asset impairment charges for goodwill, intangible assets or other long-lived assets; tax risks; our private brand offerings exposing us to various risks; regulatory risks; data privacy and cybersecurity risks; risks related to our intellectual property; the impact of ongoing or future lawsuits against us and certain of our officers and directors; risks related to climate change and other environmental, social and governance matters; and risks related to our organizational structure.

These and other important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10‑K for the year ended December 31, 2023, as updated by our Annual Report on Form 10-K for the year ended December 31, 2024 following the date hereof, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change, except as required under applicable law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Future declarations of quarterly dividends, if any, are subject to the determination and discretion of the Company's Board of Directors based on its consideration of various factors, including the Company's results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, receipt of excess tax distributions from CWGS Enterprises, LLC, its business prospects and other factors that the Company's Board of Directors may deem relevant.

We intend to use our official Facebook, X (formerly known as Twitter), and Instagram accounts, each at the handle @CampingWorld, as well as the investor page of our website, investor.campingworld.com, as a distribution channel of material information about the Company and for complying with our disclosure obligations under Regulation FD. The information we post through these social media channels and on our investor webpage may be deemed material. Accordingly, investors should subscribe to these accounts and our investor alerts, in addition to following our press releases, SEC filings, public conference calls and webcasts. These social media channels may be updated from time to time.