Headwinds continue to batter Camping World Holdings Inc., with such factors as a soft RV market, tough comps with 2018, operational restructuring and even a lawsuit taking a toll on the company.
SGB Media reported that shares of Camping World fell $1.97, or 14.1 percent, to $12.03 at market close Thursday after the company a day earlier had reported first-quarter earnings dropped sharply. Camping World reported a Q1 net loss of $26.8 million and earnings per share of (52) cents, missing consensus estimates by 64 cents. Non-GAAP earnings per share of (67) cents missed by 83 cents.
Revenue of $1.1 billion was up 0.6 percent from the same quarter a year ago, in line with Wall Street’s consensus estimate.
“Our financial results for the quarter and the directional trends for the business are effectively in line with our full-year guidance expectations,” CEO Marcus Lemonis said on the company’s earnings call with analysts. “Consistent with our forecast and despite the industry shipment data, we have seen an improvement in sales trends beginning in mid-March and it has continued into April and early May.
“To reiterate, we are reaffirming our full-year sales and adjusted EBITDA outlook of $4.9 billion to $5.1 billion, and $320 million to $340 million, respectively, for the 2019 calendar year. We are the number one RV retailer in America. We believe that the combination of all of our assets and resources, both tangible and human capital are what makes us unique and creates a massive moat around our business.”
But while Lemonis might exude confidence as he speaks of building a moat around Camping World to ward off threats, the company finds itself navigating a challenging landscape, and questions remain as to whether the company is making the maneuvers.
For the full story click here.