Camping World's Used-Vehicle Sales Surge: A Beacon of Hope in the RV Industry

Camping World Holdings, Inc. (NYSE: CWH), the world's largest recreational vehicle (RV) dealer, has reported a significant surge in used-vehicle sales, beating analysts' estimates and signaling a potential turnaround in the broader RV industry. The company's strong performance in the used-vehicle market, coupled with its strategic acquisitions and inventory management, has positioned it well for continued growth in 2025.

Camping World's used-vehicle sales revenue increased by 8.2% to $348.1 million in the fourth quarter of 2024, driven by an 11.4% increase in unit sales to 10,573 units. This impressive growth was supported by a 368 basis point increase in used vehicle gross margin to 18.7%, as a result of the discounting of higher-cost used vehicles in the fourth quarter of 2023, partially offset by a 2.8% lower average selling price.

The company's success in the used-vehicle market can be attributed to several factors, including its strategic focus on product development, affordability, and used inventory procurement. Camping World's ability to capture new and used RV sales through diversified product offerings, coupled with its effective inventory management, has allowed it to capitalize on favorable market trends and drive growth in used vehicle revenue and unit sales.

Moreover, Camping World's strategic acquisitions, such as the integration of seven Lazydays locations, have played a significant role in its growth and market share expansion. These acquisitions have expanded the company's network and positioned it as a one-stop shop for recreational vehicle needs, offering new and used RVs, parts, accessories, and membership-based Good Sam services in key RV markets.

As Camping World continues to focus on these strategic initiatives, it is likely that the stronger used-vehicle sales trends will remain sustainable. However, it is essential to monitor potential shifts in market conditions and the success of planned dealership integrations to ensure the long-term sustainability of these trends.

In conclusion, Camping World's surge in used-vehicle sales serves as a beacon of hope for the broader RV industry. The company's strategic focus on product development, affordability, used inventory procurement, and strategic acquisitions has positioned it well for continued growth in 2025. As investors and industry observers alike keep a close eye on Camping World's performance, they can expect to see more positive developments in the coming months and years.