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.

“This was not the quarter we expected back in April,” Wagner said. “The new RV sales market weakened during the peak selling season, and we made the decision to move through aged and prior model year inventory rather than carry those assets into the back half of the year.”

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-RV sales, while the upper end reflects 310,000 new units and 750,000 used units.

Wagner said preliminary SSI data showed new vehicle retail registrations declined 16% through May, and the company expected weak trends to continue into June and July. He said July demand appeared somewhat weaker than June, which management associated with renewed geopolitical tensions overseas.

Despite the softer market, Wagner said Camping World exceeded a 29% share of all new RVs sold in the United States through May. The company expects to hold about 22.5% to 23% total North American new-RV market share for the full year and approximately 8.8% to 9% share in used RVs.

Inventory Cleanup and Cost Program

Camping World reported substantial reductions in inventory and floorplan borrowings. Total RV and outdoor retail inventory dollars were down nearly 10% year over year, while floorplan notes declined about $280 million from year-end.

• New RV unit inventory was down roughly 17% year over year, while new inventory dollars declined about 5%.
• Prior-model-year new RV exposure was nearing 1%, down from more than 6% a year earlier.
• New vehicles aged more than 365 days were reduced by more than 60% from the prior year.
• Used inventory units were down 18% from the end of 2025.
• In July, the average age of used inventory was down more than 30% from the end of the first quarter, while used inventory aged more than 180 days was down nearly 50%.

The company reduced total selling, general and administrative expense by $26.6 million, or 6.1%, from a year earlier. Management has identified approximately $100 million in incremental annualized structural savings through 20 initiatives, including retiring legacy software, developing in-house systems, renegotiating agreements and simplifying back-office processes.

Kirn said about $50 million of the annualized savings are expected to be implemented by the end of 2026, with the remainder expected by early 2028. The revised 2026 outlook includes roughly $15 million of benefit, mostly in the fourth quarter, and about $35 million is expected to carry into 2027.

Good Sam, Service and Balance Sheet

Good Sam Services and Plans gross margin rose to 61.8% from 59.5% a year earlier. The company completed an enterprise-resource-planning overhaul for Good Sam during the quarter, which management said positions the unit to pursue business-to-business opportunities.

Camping World also introduced a tiered service labor-rate structure, charging $99 per hour for installations, $120 per hour for maintenance and $199 per hour for more complex work such as collision repairs. Wagner said service revenue increased following the change, while gross profit remained flat and the effective labor rate held near $165 per hour. He added that parts and accessories sales improved as more customers added products to service jobs.

At quarter-end, Camping World had $224 million of cash, $185 million of unencumbered real estate and $1.4 billion of total outstanding long-term debt. Kirn said the company aims to reduce leverage into the high-five-times range by year-end and retains a longer-term objective of reducing leverage below 3.5 times, and eventually below three times.

About Camping World (NYSE:CWH)

Camping World Holdings, Inc NYSE: CWH is a leading specialty retailer of recreational vehicles (“RVs”), RV parts and services, and outdoor lifestyle products. The company operates an extensive network of full-service RV dealerships, providing new and pre-owned RV sales alongside comprehensive maintenance, repair and warranty services. In addition to its dealership operations, Camping World offers a broad assortment of RV parts, accessories and gear through both its physical retail locations and e-commerce platform.

Beyond RV sales and service, Camping World's offerings encompass outdoor cookware, apparel, camping and towing accessories under various proprietary and third-party brands.

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