Camping World’s third quarter was marked by sales growth and adjusted earnings that surpassed Wall Street’s expectations, yet the market responded negatively due to concerns over industry headwinds and cautious commentary from management. CEO Marcus Lemonis attributed the quarter’s gains to record unit volumes, particularly in used RVs, and ongoing improvements in cost structure. However, Lemonis acknowledged persistent challenges on the new RV side, citing consumer resistance to rising prices and macroeconomic uncertainty. He described the company’s approach as “intentionally conservative,” emphasizing a focus on affordability and inventory discipline as the business enters a period of uneven demand.
Is now the time to buy CWH? Find out in our full research report (it’s free for active Edge members).
Camping World (CWH) Q3 CY2025 Highlights:
- Revenue: $1.81 billion vs analyst estimates of $1.74 billion (4.7% year-on-year growth, 3.9% beat)
- EPS (GAAP): -$0.64 vs analyst estimates of $0.24 (significant miss)
- Adjusted EBITDA: $113.8 million vs analyst estimates of $93 million (6.3% margin, 22.3% beat)
- Operating Margin: 4.4%, in line with the same quarter last year
- Locations: 197 at quarter end, down from 207 in the same quarter last year
- Same-Store Sales were up 15.6% year on year
- Market Capitalization: $810.4 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Camping World’s Q3 Earnings Call
- Joseph Altobello (Raymond James) asked about the outlook for new RV demand given rising prices. President Matt Wagner explained that price increases of 5–7% are pressuring new sales, but used RVs are absorbing demand, helping the company gain market share.
- James Hardiman (Citi) questioned the EBITDA growth path and what would drive performance above the $310 million floor. CEO Marcus Lemonis cited cost controls, used RV expansion, and AI investments, but emphasized the cautious macro outlook behind the conservative baseline.
- Charles Scholes (Truist) asked about market share targets and M&A opportunities. Lemonis clarified the goal of reaching at least 15% share, with incremental gains expected through focused dealership acquisitions, particularly in underpenetrated markets.
- Craig Kennison (Baird) inquired about OEM price increases and the impact on inventory strategy. Wagner confirmed a 5–7% price hike for model year 2026 and explained that exclusive contract-manufactured products help offset these pressures by tailoring offerings to consumer affordability.
- Scott Stember (ROTH Capital) asked about consumer credit trends and financing rates. Brett Andress, SVP, said consumer credit remains stable, and that lower lending rates could provide some relief next year, depending on timing and bank responsiveness.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will closely monitor (1) the pace of used RV and service business growth as a buffer against new RV market softness, (2) realization of cost savings from agentic AI and CRM system implementations, and (3) execution on targeted dealership acquisitions to expand market presence. Progress on inventory discipline and product innovation within exclusive brands will also be key signposts for tracking the company’s strategic execution.
Camping World currently trades at $13.12, down from $16.82 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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