Recreational vehicle (RV) and boat retailer Camping World (NYSE:CWH) fell short of analysts' expectations in Q2 CY2024, with revenue down 5% year on year to $1.81 billion. It made a GAAP profit of $0.22 per share, down from its profit of $0.64 per share in the same quarter last year.

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Camping World (CWH) Q2 CY2024 Highlights:

• Revenue: $1.81 billion vs analyst estimates of $1.86 billion (3.1% miss)

• EPS: $0.22 vs analyst estimates of $0.44 (-$0.22 miss)

• Gross Margin (GAAP): 30.3%, in line with the same quarter last year

• Free Cash Flow of $129.7 million, up from $1.01 million in the same quarter last year

• Locations: 215 at quarter end, up from 203 in the same quarter last year

• Market Capitalization: $1.03 billion

Marcus Lemonis, Chairman and Chief Executive Officer of Camping World Holdings, Inc. stated, “Our record new unit market share was a direct result of listening to the consumer and their mandate for affordability. We saw year-over-year same store new vehicle unit growth accelerate into the mid-teens in June and into the low-twenties in July, positioning our Company for a strong 2025.”

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE:CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Vehicle Retailer

Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.

Sales Growth

Camping World is larger than most consumer retail companies and benefits from economies of scale, giving it an edge over its competitors.

As you can see below, the company's annualized revenue growth rate of 4.5% over the last five years was sluggish , but to its credit, it opened new stores and expanded its reach.

This quarter, Camping World missed Wall Street's estimates and reported a rather uninspiring 5% year-on-year revenue decline, generating $1.81 billion in revenue. Looking ahead, Wall Street expects sales to grow 8.1% over the next 12 months, an acceleration from this quarter.

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Same-Store Sales

Same-store sales growth is an important metric that tracks demand for a retailer's established brick-and-mortar stores and e-commerce platform.

Camping World's demand has been shrinking over the last eight quarters, and on average, its same-store sales have declined by 12.8% year on year. This performance is quite concerning and the company should reconsider its strategy before investing its precious capital into new store buildouts.

Key Takeaways from Camping World's Q2 Results

We enjoyed seeing Camping World exceed analysts' gross margin expectations this quarter. On the other hand, its revenue and EPS missed Wall Street's estimates, sending the stock down 5.7% to $21.56 immediately following the results. Overall, this quarter could have been better.

Camping World may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.