CAMPING WORLD HOLDINGS INC-A (NYSE:CWH) reported second-quarter results that fell short of Wall Street expectations on both the top and bottom lines, sending shares sharply lower in after-hours trading. The recreational vehicle retailer posted revenue of $1.934 billion, a 2.1% decline from the prior-year quarter and roughly 4% below the analyst consensus estimate of $2.015 billion. Non-GAAP adjusted earnings per share came in at $0.57, missing the $0.6271 analysts had forecast by more than 9%. The market reaction has been swift, with the stock dropping about 6.9% after the close.
Revenue and Earnings Miss
The company’s second-quarter performance was pressured by weakening industry trends during the peak selling season in May and June, which more than offset progress on management’s operational priorities. New vehicle revenue fell 5.0% to $869 million, driven by a 16.4% drop in unit sales, though average selling prices rose 13.6%. Used vehicle revenue edged up 1.4% to $580 million, with units increasing 5.2% but average prices declining 3.6%. Gross profit decreased 9.1% to $538.4 million, with gross margin contracting 214 basis points to 27.8%.
Key Operating Metrics
The press release highlighted several important operational data points:
- New vehicle gross margin: 10.9%, down 286 bps year over year, as average costs per new vehicle rose 17.4%
- Used vehicle gross margin: 16.5%, down 397 bps, reflecting pricing pressure
- Combined new and used same-store unit sales: down 7.3%
- Good Sam Services and Plans revenue: $54.6 million, roughly flat, while segment gross margin improved
- SG&A: $410.9 million, down $26.6 million or 6.1%, reflecting headcount reductions and lower commission costs
CEO Matthew Wagner noted that the company grew RV market share and generated $333 million in operating cash flow year-to-date, but added that "our progress was more than offset by new RV industry trends that weakened during the peak selling season."
Guidance Reset and Market Reaction
In response to the soft demand environment, management lowered its full-year 2026 Adjusted EBITDA guidance range from $275–$325 million to $230–$270 million. The new midpoint of $250 million implies a roughly 24% decline from the prior midpoint of $300 million. The company also revised its retail industry outlook to 290,000–310,000 new units, representing an approximate 15% year-over-year decline at the midpoint. This guidance reset is well below the analyst consensus full-year revenue estimate of $6.574 billion and suggests continued margin pressure in the back half of the year.
The after-market selloff is a clear signal that investors are disappointed not only by the quarterly miss but also by the magnitude of the guidance reduction. Volume trends remained soft in July, though management believes healthier inventory and sequentially improving vehicle margins could support year-over-year Adjusted EBITDA growth for the full year.
Looking Ahead
Camping World identified an additional $100 million in structural SG&A savings to be fully annualized by early 2028, with $50 million of run-rate savings expected by the end of 2026. These initiatives include simplifying operations, improving tools for the team, and delivering a more consistent customer experience. However, the near-term outlook remains clouded by macroeconomic headwinds, including geopolitical uncertainty, elevated fuel prices, and a high-interest-rate environment that have weighed on consumer sentiment.
For investors seeking additional historical context on Camping World’s earnings performance, review the full earnings history here. To track updated analyst forecasts and revenue projections for the coming quarters, view the latest estimates here.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »
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Camping World (NYSE:CWH) Tumbles After Q2 Miss and Guidance Cut
CAMPING WORLD HOLDINGS INC-A (NYSE:CWH) reported second-quarter results that fell short of Wall Street expectations on both the top and bottom lines, sending shares sharply lower in after-hours trading. The recreational vehicle retailer posted revenue of $1.934 billion, a 2.1% decline from the prior-year quarter and roughly 4% below the analyst consensus estimate of $2.015 billion. Non-GAAP adjusted earnings per share came in at $0.57, missing the $0.6271 analysts had forecast by more than 9%. The market reaction has been swift, with the stock dropping about 6.9% after the close.
Revenue and Earnings Miss
The company’s second-quarter performance was pressured by weakening industry trends during the peak selling season in May and June, which more than offset progress on management’s operational priorities. New vehicle revenue fell 5.0% to $869 million, driven by a 16.4% drop in unit sales, though average selling prices rose 13.6%. Used vehicle revenue edged up 1.4% to $580 million, with units increasing 5.2% but average prices declining 3.6%. Gross profit decreased 9.1% to $538.4 million, with gross margin contracting 214 basis points to 27.8%.
Key Operating Metrics
The press release highlighted several important operational data points:
CEO Matthew Wagner noted that the company grew RV market share and generated $333 million in operating cash flow year-to-date, but added that "our progress was more than offset by new RV industry trends that weakened during the peak selling season."
Guidance Reset and Market Reaction
In response to the soft demand environment, management lowered its full-year 2026 Adjusted EBITDA guidance range from $275–$325 million to $230–$270 million. The new midpoint of $250 million implies a roughly 24% decline from the prior midpoint of $300 million. The company also revised its retail industry outlook to 290,000–310,000 new units, representing an approximate 15% year-over-year decline at the midpoint. This guidance reset is well below the analyst consensus full-year revenue estimate of $6.574 billion and suggests continued margin pressure in the back half of the year.
The after-market selloff is a clear signal that investors are disappointed not only by the quarterly miss but also by the magnitude of the guidance reduction. Volume trends remained soft in July, though management believes healthier inventory and sequentially improving vehicle margins could support year-over-year Adjusted EBITDA growth for the full year.
Looking Ahead
Camping World identified an additional $100 million in structural SG&A savings to be fully annualized by early 2028, with $50 million of run-rate savings expected by the end of 2026. These initiatives include simplifying operations, improving tools for the team, and delivering a more consistent customer experience. However, the near-term outlook remains clouded by macroeconomic headwinds, including geopolitical uncertainty, elevated fuel prices, and a high-interest-rate environment that have weighed on consumer sentiment.
For investors seeking additional historical context on Camping World’s earnings performance, review the full earnings history here. To track updated analyst forecasts and revenue projections for the coming quarters, view the latest estimates here.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »