Camping World: A Mildly Improbable Decline

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Shares of Camping World Holdings (CWH 16.41%) experienced a rather noticeable downward trajectory today. This wasn’t, as some might initially suspect, due to a sudden outbreak of common sense amongst recreational vehicle purchasers, but rather a confluence of factors best described as… complicated. The company reported revenue figures for the fourth quarter that, while not exactly catastrophic, weren’t exactly setting the world on fire either. And then, of course, there was the dividend. (A dividend, one might observe, is essentially a company politely returning some of your money to you, which is always a good sign, unless they stop doing it, in which case it’s… less good.)

Management, in a move that can only be described as fiscally responsible, or perhaps just a recognition of the inevitable heat death of the universe, decided to pause said dividend. This, it seems, was the primary catalyst for the stock’s descent. (One wonders if they consulted a soothsayer. Or, failing that, a reasonably accurate spreadsheet.)

The company did, however, project adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to continue existing into 2026. (EBITDA, for the uninitiated, is a bit like counting sheep. It’s a useful exercise, but doesn’t necessarily reflect the actual number of sheep present.) As of 10:54 a.m. ET, the stock was down 19.6% on the news. Which, in the grand scheme of things, is roughly the same as losing 19.6% of a very large number of… well, anything, really.)

Camping World continues to struggle

Camping World, it appears, is somewhat sensitive to the macroeconomic climate. This is not entirely surprising. Most things are. Years of inflation and a worsening job market seem to be weighing on its growth. (It’s a bit like trying to fly a kite in a hurricane. Technically possible, but not particularly advisable.) Revenue for the quarter fell 2.6% to $1.17 billion, which, while not quite matching the estimated $1.16 billion, was close enough to be unsettling. New vehicle sales, the company’s highest-margin category, were down 8% to $457.8 million, and units fell 7.1% to 10,750. Used-vehicle sales, thankfully, helped to mitigate some of the damage. (One can only assume the market for slightly pre-owned RVs remains robust.)

New-vehicle inventory, meanwhile, jumped 20%, suggesting the company may have overestimated demand. (A common human failing, really.) This led to a 20% decline in average gross profit per new unit to $5,231. (Which, one suspects, is still more than the average price of a moderately sized planet.)

On the bottom line, its adjusted EBITDA loss widened from $2.5 million to $26.2 million, and its adjusted loss per share widened from $0.47 to $0.73 in the seasonally slow fourth quarter. (Numbers, numbers everywhere. It’s enough to make one long for the comforting simplicity of binary code.)

Finally, management announced the suspension of the dividend, in order to focus on net debt reduction. That seemed to be the primary reason for the sell-off. (One can’t fault them for prioritizing solvency. Though, one does wonder if they considered simply printing more money. It works for some.)

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What’s next for Camping World

Looking ahead to 2026, management noted “early season RV show momentum,” and forecast adjusted EBITDA of $275 million-$325 million, up 23.5% from 2025. (One hopes this momentum isn’t merely the result of cleverly placed air conditioning.) It’s also focused on correcting its inventory levels, meaning markdowns to clear inventory will lead to gross margin headwinds in the first half of the year, followed by tailwinds in the second half. (A classic example of temporal arbitrage, really.)

Overall, Camping World has been grappling with billions in debt, and a turnaround seems… challenging, without a significant improvement in the macro-level economy. (Which, let’s be honest, is a bit like waiting for a perfectly aligned series of improbable events to occur. But hey, stranger things have happened.)

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2026-02-25 19:53