Shares of Camping World Holdings Inc. (CWH, -2.37%) fell after hours on Tuesday following the release of their second-quarter financial results. The RV retailer reported a net income of $64.7 million, or 64 cents per share, compared to $197.9 million, or $2.01 per share, in the same quarter last year. This decrease can be attributed primarily to a pretax drop in new vehicle gross profit. Sales also declined by 12.4% to $1.9 billion, compared to $2.17 billion in the prior-year quarter. Adjusted earnings per share stood at 73 cents, falling short of analysts' expectations of 78 cents per share.
Analysts polled by FactSet anticipated revenue of $1.98 billion. As a result, shares experienced a 7.9% decrease in after-hours trading.
These results align with the industry trend as other RV makers, such as Winnebago Industries Inc. (WGO, -0.44%), predict weaker demand for recreational vehicles in the near future after experiencing a surge in outdoor activity during the pandemic.
However, despite these challenges, Camping World's Chief Executive Marcus Lemonis expressed enthusiasm about the company's development. Lemonis revealed that they have "opened, acquired, or signed letters of intent on 30 dealership locations year-to-date," and highlighted the "unprecedented" opportunity for additional acquisitions. He continued by stating, "We plan to capitalize on it as we invest ahead of anticipated revenue growth in 2024 and beyond."
Overall, Camping World Holdings Inc.'s Q2 results fell short of expectations, but the company remains determined to maximize their potential in the market.
