CWH Q3 Deep Dive: Used RV Sales, Cost Controls, and Conservative Outlook Shape Results

Recreational vehicle (RV) and boat retailer Camping World (NYSE:CWH) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 4.7% year on year to $1.81 billion. Its non-GAAP profit of $0.43 per share was 41% above analysts’ consensus estimates.

Is now the time to buy CWH? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Camping World’s third quarter was marked by sales growth and adjusted earnings that surpassed Wall Street’s expectations, yet the market responded negatively due to concerns over industry headwinds and cautious commentary from management. CEO Marcus Lemonis attributed the quarter’s gains to record unit volumes, particularly in used RVs, and ongoing improvements in cost structure. However, Lemonis acknowledged persistent challenges on the new RV side, citing consumer resistance to rising prices and macroeconomic uncertainty. He described the company’s approach as “intentionally conservative,” emphasizing a focus on affordability and inventory discipline as the business enters a period of uneven demand.

Looking ahead, management set a conservative earnings outlook, highlighting four key areas for potential upside: further cost reductions, expansion in used RV sales, dealership acquisitions, and growth in new RV sales. President Matt Wagner underscored the company’s commitment to leveraging agentic AI for efficiency and scaling its used RV supply chain. Lemonis cautioned that unpredictable factors—such as interest rates and tariffs—make forecasting difficult, stating, “We want to set an expectation that we know we can hurdle, that we can build our cash flow around and we can build our leverage targets towards.”

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to strong execution in used RV sales, disciplined cost management, and ongoing investment in technology and operational efficiency.

• Used RV sales momentum: The company’s used RV segment saw unit volumes increase over 30%, driven by affordability concerns and a broader consumer shift away from new RVs. Wagner highlighted that used RV sales now match new sales, marking a strategic shift that mitigates volatility from new RV demand.
• Cost structure improvements: Management reported significant progress in reducing selling, general and administrative (SG&A) expenses, with a 360 basis point improvement year-over-year. These efficiencies stemmed from technology investments and ongoing reevaluation of operational processes.
• Inventory discipline: Lemonis emphasized the importance of conservative stocking on the new RV side, noting the risk of overcommitting to inventory amid uncertain demand. The company now favors a flexible approach, allowing it to adjust quickly if market conditions improve.
• Good Sam and service stability: The Good Sam membership and service businesses remained resilient, providing stable margins and recurring revenue despite the broader consumer slowdown. The transition to a tiered loyalty program also added nearly one million free-tier members, which are not included in reported paid membership figures.
• Strategic use of AI: Wagner described the early impact of agentic and enterprise AI initiatives, aimed at reducing costs and improving both the customer and employee experience. Management expects further operating leverage as these digital tools are rolled out across more business segments.

Drivers of Future Performance

Camping World’s outlook for the next year is shaped by a conservative stance on new RV sales and a focus on scaling used RV, cost controls, and targeted acquisitions.

• Used RV and service focus: Management believes that continued growth in used RV sales, alongside stable performance in service and Good Sam businesses, will help offset headwinds in the new RV market. The company expects these segments to provide a reliable earnings floor and reduce exposure to fluctuating consumer demand for new vehicles.
• Operational efficiency via technology: The rollout of agentic AI and new customer relationship management (CRM) systems is set to drive further SG&A reductions. Management sees at least $15 million in cost savings next year, not including additional upside from new AI-driven process improvements.
• Selective dealership acquisitions: Management is targeting smaller, accretive acquisitions to expand market share without overextending balance sheet leverage. They view current industry conditions as creating opportunities for both distressed and high-performing dealership acquisitions, supporting incremental EBITDA growth.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will closely monitor (1) the pace of used RV and service business growth as a buffer against new RV market softness, (2) realization of cost savings from agentic AI and CRM system implementations, and (3) execution on targeted dealership acquisitions to expand market presence. Progress on inventory discipline and product innovation within exclusive brands will also be key signposts for tracking the company’s strategic execution.

Camping World currently trades at $13.09, down from $16.82 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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