Lazydays Q1 2025: Unraveling Contradictions in Divestiture Strategy, Inventory Management, and Financial Health

Divestiture strategy, inventory optimization and market recovery, dealership sell-off strategy, financial performance and debt reduction are the key contradictions discussed in Lazydays' latest 2025Q1 earnings call.



Footprint Optimization and Financial Improvement:
- Lazydays completed the sale of 5 dealerships to Camping World and entered into a letter of intent with General RV Center for 3 additional stores.
- The transactions reduced debt by approximately $145 million, drove a $10 million year-over-year reduction in SG&A expenses, and improved the company's financial position.

Operational Performance and Profitability Enhancement:
- Gross profit margins improved across all product lines, leading to a notable increase in gross profit despite a lower volume of sales.
- The company deliberately reduced prior model year inventory, leading to a 39% increase in gross profit per unit sold.

Macro Environment and Tariff Concerns:
- The macro environment is creating uncertainties, such as potential impacts from tariffs, supply chain shortages, and other economic trends.
- Lazydays is closely monitoring these factors and working with OEM partners to understand their impact on the business, while remaining optimistic about the attractiveness of the RV lifestyle.

New and Used Unit Sales and Inventory Strategy:
- New unit sales were up 18% and used unit sales were up 19% in the first quarter compared to the fourth quarter of 2024.
- The increase in sales was driven by a healthier inventory mix, seasonal favorability, and improved market conditions, with a focus on increasing the percentage of model year 2025 and 2026 units in inventory.