LINCOLNSHIRE - Camping World Holdings, Inc. (NYSE: NYSE:CWH), America's Recreation Dealer, announced its financial results for the first quarter ended March 31, 2024, with a reported Q1 adjusted EPS of -$0.40, which was below the analyst estimate of -$0.36. The company's revenue for the quarter was $1.36 billion, falling short of the consensus estimate of $1.43 billion.
The company's revenue saw a decline of 8.3% from the same quarter last year, indicating a challenging period. Despite the decrease in overall revenue, new vehicle revenue experienced a slight increase of 1.4% to $656.1 million, with unit sales up by 21.3%, reflecting the company's strategic efforts to widen consumer affordability and drive down invoice pricing. Marcus Lemonis, Chairman and CEO, attributed the growth in new unit sales to the company's intentional efforts which "meaningfully outpaced broader RV industry trends."
However, used vehicle revenue did not perform as well, with a significant decrease of 24.1% to $337.7 million, and unit sales declining by 14.0%. The average selling price of new vehicles dropped by 16.4%, primarily due to a mix shift towards more affordable travel trailers and discounting of older models. Similarly, the average selling price of used vehicles fell by 11.7%.
Gross profit also saw a decrease of 8.8% to $402.4 million, with total gross margin slightly down by 16 basis points to 29.5%. Selling, general, and administrative expenses, on the other hand, increased by 1.6% to $371.5 million, despite a notable increase in store locations by 10.3% to a total of 215.
The net loss for the quarter was substantial, at $50.8 million, a stark contrast to the net income of $4.9 million reported in the first quarter of 2023. The diluted loss per share of Class A common stock was -$0.51 for the first quarter of 2024, compared to diluted earnings per share of $0.05 for the same quarter last year.
Adjusted EBITDA was $8.2 million, a significant decrease of 86.5%, mainly due to the decrease in gross profit, increased floor plan interest, and higher selling, general, and administrative expenses.
Despite the challenges faced in the first quarter, Camping World remains optimistic about its future performance. Lemonis concluded, "With significant new unit volume momentum and a dominant inventory position, we believe we have laid the groundwork for improving fundamentals going forward."
The company did not provide specific guidance for the upcoming quarters or fiscal year, nor was there an analyst consensus available for future guidance comparison. Additionally, there was no stock movement percentage provided to indicate the market's reaction to the earnings release.
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