Lazydays RV SuperCenter, a large privately held retailer in Seffner, Fla., reported lower first-quarter sales.
But, according to an Associated Press report, an analyst noted that demand for motorhomes could be stronger than it appears, based on sales of used vehicles at Lazydays.
“Given its size, we believe Lazydays serves as a proxy for industry retail trends,” Baird U.S. Equity Research analyst Craig Kennison said in a note to investors Tuesday (May 16).
The company registered a 3% drop in first-quarter revenue, as a 3% increase in sales of used vehicles was more than offset by a 7% decline in new vehicle sales, according to Kennison.
“We believe that the healthy availability of used motorhomes in the retail channel coupled with lack of meaningful innovation in the recent model year causes some buyers to opt for used units,” Kennison said.
A 12% increase in sales of used Class A diesel vehicles drove the run-up in used vehicle sales. Kennison said that increase “shows that the underlying interest in motorhomes is stronger than new unit demand suggests.”
But for the manufacturers to tap into that demand, Kennison said they would have to come up with new products customers want. “We believe the manufacturer that has the best, most innovative product in the low-end diesel category will gain share in the motorhome market,” he said.
Among new vehicles, Class C unit sales increased 45% at Lazydays, which Kennison said shows that “consumers are willing to purchase new products if the products are innovative.”
But he cautioned, “We are hesitant to draw overarching conclusions as the sample size is limited.”