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Camping World’s 2Q Sales Jump 20% to $1.3B

The surging RV industry and growing interest by younger travelers that are beginning to see the value of an RV, and the RV lifestyle, has propelled Lincolnshire, Ill.-based Camping World Holdings’ stock forward.

According to madison.com, sales jumped more than 20%, to $1.28 billion, during the second quarter of fiscal 2018. That is more than $100 million higher than most investors had expected to see from the company.

Adjusted pro forma net income was up more than 40%, to $77.7 million, and resulted in adjusted earnings of $0.91 per share, easily topping the consensus forecast of $0.68 per share.

Taking a closer look at Camping World’s numbers, same-store sales growth accelerated to 10.6%, with the company pointing especially to sales of new towable RV units in supporting the gains.

New vehicle-units sold soared by nearly two-fifths, to 21,900, helping to offset a 4.5% decline in the average selling price of new RVs, to just under $34,800. A higher sales mix of lower-priced towable RV units was responsible for the drop in average sale price, but strong demand for new RVs came, in part, from shortages of high-quality used vehicles.

That shortage showed up in Camping World’s used-vehicle results. Units sold fell 8%, to just under 9,100, and average sale prices fell 1%, to $21,660. The reduced inventory was primarily responsible for the poor performance, with Camping World explaining that fewer trade-ins were accepted from those buying new RVs.

CEO Marcus Lemonis was quite happy with the way that the company is moving.

“We delivered exceptional record-breaking results in the second quarter,” Lemonis said, and “we believe these results clearly demonstrate the power and leverage of our unique operating model.”

In particular, Lemonis sees the potential to expand beyond a focus on RVs, to incorporate boating and other outdoor enthusiasts with a wider range of products and services for those pursuing an outdoor lifestyle.

Camping World’s recent acquisition activity only highlights the potential for growth.

Within the past few weeks, Camping World has acquired RV dealerships in Michigan and Texas, as well as retailer TheHouse.com, which specializes in bikes, sailboards, skateboards, wakeboards, snowboards and other outdoor gear.

Analysts are also excited about the company’s prospects, with one prominent Wall Street company pointing to Camping World’s decision to purchase bankrupt sporting-goods chain Gander Mountain as having the potential for boosting earnings further from their current levels.

To read more on the story click here.

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