Camping World 2025 Q2 Earnings Surging Net Income by 145.7%

Camping World (CWH) reported its fiscal 2025 Q2 earnings on July 30th, 2025. The company exceeded expectations with a strong surge in net income and maintained its full-year guidance, highlighting its strategic cost control measures. Camping World saw its EPS rise significantly, and Marcus Lemonis expressed satisfaction with the financial results. The company is optimistic about its mid-cycle earnings potential, projecting over $500 million in adjusted EBITDA.

Revenue
Camping World's total revenue for 2025 Q2 reached $1.98 billion, marking a 9.4% increase from $1.81 billion in the same quarter of 2024. The RV and Outdoor Retail segment contributed significantly, generating $1.92 billion. New vehicles delivered revenue of $915.11 million, while used vehicles added $572.27 million. Products, services, and other categories brought in $222.89 million, and finance and insurance netted $201.20 million. Good Sam Services and Plans reported $54.21 million, and the Good Sam Club contributed $10.27 million.

Earnings/Net Income
Camping World's EPS surged by 118.2% to $0.48 in 2025 Q2, compared to $0.22 in 2024 Q2. Net income also showed remarkable growth, reaching $57.52 million, a 145.7% increase from $23.41 million the previous year. The EPS growth signals positive financial health.

Post Earnings Price Action Review
The strategy of buying Camping World stock following an earnings beat and holding for 30 days resulted in a notable underperformance. Despite the absence of losses during the backtest period, the strategy yielded a total return of -51.91%, significantly lagging behind a benchmark return of 87.61%. The maximum drawdown was 0.00%, indicating stability, yet it failed to capture any gains, leading to a compound annual growth rate (CAGR) of -13.70% and a Sharpe ratio of -0.25. This highlights the need for reassessing investment strategies post-earnings announcements, as market reactions can deviate from expected patterns, impacting overall returns.

CEO Commentary
Marcus Lemonis, Chairman and CEO of Camping World Holdings, Inc., expressed strong satisfaction with the company’s financial performance, attributing success to volume, margin enhancement, and cost control measures. He emphasized the importance of managing inventory effectively to capitalize on gross profit opportunities while leveraging data analytics and manufacturing partnerships. Lemonis noted significant structural changes, including a reduction of over 900 employees and the consolidation of 16 locations, which improved productivity per location and showcased the company's adaptability in a challenging environment.

Guidance
The company maintains its full-year guidance, expecting new unit volume growth exceeding high-singles compared to the prior year. Average selling prices (ASP) for new vehicles are anticipated to improve seasonally in the latter half of the year but may decline by 10-12% for the full year. CWH expects to achieve 300-400 basis points of improvement in SG&A as a percentage of gross profit, with further efficiency expected as ASPs recover. The company is optimistic about its mid-cycle earnings potential, targeting over $500 million in adjusted EBITDA based on current operations.

Additional News
Recent weeks have seen Camping World Holdings Inc (CWH) trading at a discount, significantly below its 52-week high of $25.97, offering a potential upside. Despite the current share price of $15.68, analysts maintain a consensus price target of $28, reflecting strong buy recommendations. Insider and institutional investors hold a substantial share of Camping World, with ABRAMS CAPITAL MANAGEMENT, L.P. being the largest institutional shareholder. Additionally, Camping World is expected to continue its dividend payouts, with a yield of 3.19 percent. While the stock has been showing a downward trend recently, analysts foresee potential growth, suggesting a strategic buying opportunity based on long-term prospects.