Recreational vehicle (RV) and boat retailer Camping World (NYSE: CWH) announced better-than-expected revenue in Q2 CY2025, with sales up 9.4% year on year to $1.98 billion. Its non-GAAP profit of $0.57 per share was 4.8% below analysts’ consensus estimates.

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StockStory’s Take

Camping World’s second quarter saw robust revenue growth but a sharply negative market reaction as the company’s non-GAAP profit missed Wall Street’s consensus. Management attributed strong top-line growth to record RV unit sales and increased finance and insurance revenue, despite challenging macroeconomic conditions and tariffs. CEO Marcus Lemonis highlighted a deliberate focus on driving transaction volume and customer acquisition, even as the company continued consolidating locations and reducing headcount to enhance efficiency. Lemonis acknowledged, “We set a record selling more RVs than we ever have in an entire quarter, 45,000 units,” but also expressed disappointment with the bottom-line results, citing ongoing pressures from average selling price declines and the need for further cost reductions.

Looking forward, Camping World is banking on continued momentum in used RV sales, disciplined cost management, and targeted investments in its Good Sam business for growth. Management expects double-digit growth in used units and sees opportunities for margin expansion as average selling prices stabilize and potentially rise. Lemonis emphasized the company’s intent to “accelerate our gross margin by 100 basis points over the next 18 months,” while President Matthew Wagner pointed to scalable supply chain improvements in the used segment. However, management cautioned that broader economic uncertainty and tariffs remain headwinds, making ongoing operational agility critical for meeting profitability targets in the coming quarters.

Key Insights from Management’s Remarks

Management attributed the quarter’s revenue growth to record RV sales and expanded finance and insurance activity, while margin improvement stemmed from cost controls and location consolidation amid ongoing market volatility.

• Record RV unit sales: The company sold more RVs than in any prior quarter, with both new and used units contributing to volume growth. This expansion occurred despite industry-wide shipment declines, reflecting Camping World’s ability to capture market share through effective inventory management and sales strategies.

• Finance and insurance outperformance: Revenue from finance and insurance (F&I) reached an all-time high, driven by increased unit sales and consistent product penetration rates. Management views F&I as a key source of incremental profitability, with higher average selling prices boosting per-unit F&I revenue.

• Store consolidation strategy: Camping World continued to consolidate underperforming locations, reducing its store count while increasing unit and profit per location. Management stressed that the focus is now on maximizing productivity and profitability at each site rather than expanding footprint.

• SG&A cost reduction: The company achieved material reductions in selling, general, and administrative (SG&A) expenses through headcount cuts and operational efficiencies. Lemonis noted that further fixed cost reductions are expected over the remainder of the year, supporting margin improvement goals.

• Used RV supply chain investment: Significant investment in a centralized used RV procurement team enabled record purchasing and inventory levels. Management highlighted this as foundational for sustaining double-digit used unit growth, which historically has driven higher profitability during past cycles.

Drivers of Future Performance

Camping World’s outlook is anchored in accelerating used RV growth, ongoing cost discipline, and targeted Good Sam investments, while navigating persistent macroeconomic and industry headwinds.

• Used RV momentum: Management expects double-digit used RV sales growth to continue, supported by enhanced procurement capabilities and a flexible supply chain. Wagner stated that used RVs are “the key to our continued idiosyncratic earnings growth in the years ahead,” with scalable processes to adjust inventory in real time based on demand.

• Cost structure optimization: Lemonis reiterated the goal of improving SG&A expense leverage by 600 to 700 basis points, driven by further headcount and location consolidation. The company also targets an incremental $10–15 million in fixed cost reductions, with benefits expected to become more apparent in the second half.

• Macroeconomic and tariff risks: Management identified tariffs and lingering economic uncertainty, including interest rates, as ongoing risks to average selling prices and demand. While Camping World is seeing early signs of ASP stabilization, the company is preparing for continued volatility and aims to remain nimble in inventory, pricing, and capital allocation decisions.

Catalysts in Upcoming Quarters

As we look ahead, our team will be watching (1) whether used RV sales sustain double-digit growth as inventory levels rise, (2) progress on SG&A cost reductions and the impact of further store consolidation, and (3) stabilization or improvement in average selling prices amid tariff and macroeconomic pressures. Execution on capital allocation and expansion of the Good Sam platform will also be critical to achieving management’s profitability targets.

Camping World currently trades at $16.50, down from $17.63 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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