Camping World says some RV dealers cut prices so deeply this summer that it chose to lose business rather than match them.
New RV unit sales at the chain fell 25.4% in the third quarter compared with a year earlier. CEO Matthew Wagner acknowledged on the November 3 earnings call that the discounting decision cost the company market share.
Shares were trading at $5.11, down about 4.5% from Monday’s close, at 9:07 a.m. Central on November 3, according to Stock Analysis. Trading was still underway.
Discounts Camping World Wouldn’t Match
Rivals were trying to clear older inventory as the summer selling season ended, Wagner told analysts.
Matching their prices would have left too little to cover operating costs, he said.
“We would make that trade again at these margins if we had to,” Wagner said on the call.
Management also cited weaker demand.
The $320 Million Loss Needs Context
Monday’s earnings release reported a $320.1 million consolidated net loss. Most of that came from a $286.7 million noncash goodwill impairment tied to the RV and Outdoor Retail business.
That is an accounting reduction in the value of goodwill carried on the company’s books. It reduced reported earnings without representing a cash payment.
The operating results also weakened. Revenue fell 12.4% to $1.58 billion, and the company earned a smaller gross margin on each dollar of new RV sales.
New and Used RV Prices Head in Opposite Directions
Fifth wheels and motorhomes accounted for a larger share of Camping World’s new RV sales during the quarter. Wagner said that shift helped push the average new RV selling price to $42,239, up 11.7% from a year earlier.
Used RV buyers paid less on average. The average selling price was $30,187, down about $1,300 from the same quarter last year.
The discounts on new RVs also influenced the company’s approach to used inventory. According to Wagner, competitors’ summer price cuts made Camping World more cautious about replenishing its used stock because new RV pricing can affect used values.
As new RV pricing became clearer heading toward year-end, management said it was gaining a better sense of which used RV types and model years to pursue for the coming year.
Staff Cuts and Four Store Closures
Tuesday’s earnings call revealed the scale of Camping World’s staff cuts. Wagner said the company reduced headcount by nearly 15% during August and September.
The company also closed four dealerships, with plans to reopen two when market conditions support it. As CamperFAQs reported on October 5, the closures and additional job cuts accompanied another reduction in Camping World’s annual earnings outlook.
Management expects the additional staff reductions to save at least $50 million annually. Camping World is also accelerating portions of an earlier $100 million cost-cutting program.
One Trend Had Improved by October
There was some improvement in the company’s monthly sales comparisons. According to Wagner, new same-store sales were down by percentages in the high 20s in July, compared with a year earlier. By October, that decline had narrowed to the low teens.
October’s improvement still left sales below last year’s levels.
Looking ahead, management said it was building its 2027 plans around more conservative assumptions than the industry’s expectation of sales comparable to 2026.
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