Camping World Q2 Earnings Call Highlights

Camping World Q2 Earnings Call Highlights

Key Points Weak new-RV demand pressured results: Second-quarter revenue fell 2.1% to $1.9 billion, while new-unit sales dropped 16.4% and vehicle margins narrowed as Camping World cleared aged inventory. Outlook was reduced: The company lowered its 2026 industry new-RV forecast to 290,000–310,000 units and now expects adjusted EBITDA of $230 million–$270 million, citing affordability concerns, interest rates and weaker consumer demand. Inventory and costs are improving: RV inventory dollars declined nearly 10% year over year, floorplan borrowings fell about $280 million from year-end, and management identified approximately $100 million in annualized structural savings while continuing to target lower leverage.

Camping World NYSE: CWH said second-quarter results were pressured by a weaker-than-expected new RV retail market during the peak selling season, prompting the company to reduce its full-year adjusted EBITDA outlook while emphasizing market-share gains, inventory reductions and planned cost savings. Chief Executive Officer and President Matthew Wagner said the company operated in what it described as the weakest new RV retail environment in more than 15 years. Camping World chose to clear aged and prior-model-year inventory rather than carry those units into the second half, a decision that weighed on vehicle gross profit in the quarter.

Revenue Declines as Vehicle Margins Compress Chief Financial Officer Tom Kirn said total second-quarter revenue was $1.9 billion, down 2.1% from a year earlier. New vehicle revenue declined 5% to $869 million, as new unit sales fell 16.4%. Used vehicle revenue increased 1.4% to $580 million, supported by a 5% rise in used vehicle unit sales.

The inventory-clearing actions and competitive promotional environment reduced vehicle margins. New vehicle gross margin was 10.9%, compared with 13.8% in the prior-year period, while used vehicle gross margin was 16.5%, compared with 20.5% a year earlier. Management said it expects vehicle margins to improve sequentially in the second half, citing early margin progression in July and a cleaner inventory position. Wagner said the company expects full-year new vehicle margins of roughly 11.5% to 12% and used vehicle margins of 17.5% to slightly above 18%. New vehicle average selling price rose 13% during the quarter, driven largely by product mix and targeted gains in the fifth-wheel and motorized segments. Wagner said the travel-trailer category remained under pressure, while the company gained share in Class C and fifth-wheel products. Used vehicle average selling price was about $29,000 in the second quarter, and management said it could recover toward roughly $30,000 for the full year as sales of higher-priced products typically increase in the fall and winter.

Lower Industry Forecast Drives Revised Outlook Camping World reduced its outlook for the 2026 new RV retail market to 290,000 to 310,000 units, from a prior estimate of 325,000 to 350,000 units. Wagner cited geopolitical tensions in the Middle East, gas prices, affordability concerns, consumer confidence and higher interest rates as constraints on new-RV demand. The company now expects 2026 adjusted EBITDA of $230 million to $270 million. Management said the lower end of the range assumes approximately 290,000 industry new-RV sales and 715,000 used-...