Camping World's Q4 2024: Unpacking Contradictions in Inventory Strategy, Pricing, and SG&A

These are the key contradictions discussed in Camping World's latest 2024Q4 earnings call, specifically including: Inventory Strategy and Market Share Gains, Pricing and ASP Strategy, and SG&A Improvements:



Record Combined Market Share and Growth Strategy:
- Camping World Holdings reported record combined new and used market share of 11.2% for 2024.
- The company aims to achieve a new record of 12% market share in 2025, selling over 130,000 units.
- The growth strategy is driven by increased used inventory procurement and an emphasis on affordability and value-priced units.

Earnings Recovery and SG&A Reduction:
- Camping World expects explosive EBITDA growth in 2025, driven primarily by gross margin and SG&A improvements.
- The company targets a 600 to 700 basis point improvement in SG&A as a percentage of gross profit.
- This is due to strategic cost adjustments and a focus on operational efficiency.

Favorable Finance Rates and ASP Trends:
- The company notes a 50 to 100 basis points reduction in retail interest rates compared to a year ago.
- This is expected to accelerate retail finance rate relief and allow customers to take on more units with consistent monthly payments.
- The expected ASP for new and used units is $40,000 and $32,000, respectively, with a focus on affordability.

Acquisition and Dealer Expansion:
- Camping World plans to acquire 4-6 rooftops by the end of spring, adding to the 4 already closed in 2025.
- These acquisitions aim to expand market dominance and maintain used business dominance.
- The strategy is supported by a strong pipeline and focus on judicious capital allocation.