Nearly half a century after their initial heyday, recreational vehicles are back in vogue, and retailer Camping World Holdings Inc. wants to give customers as much support as they need to commit completely to the RV lifestyle.
The Motley Fool reported that with retail locations that go beyond simply selling products to provide a focal point for social networks surround recreational vehicles, Camping World wants not only to make the most of the trend toward RVs but also to become an increasingly holistic outdoors-oriented business.
Coming into Tuesday’s (Feb. 27) fourth-quarter financial report, Camping World investors were expecting the company’s strong revenue and profit growth to continue. Yet Camping World’s results once again eclipsed even the most optimistic of expectations, and the company remains positive about its future in the year to come.
Camping World Holdings’ fourth-quarter results closed a phenomenal year. Revenue soared 33% to $889 million, blowing away expected growth rates of just 20%. Adjusted pro forma net income more than doubled to $22 million, and the resulting adjusted earnings of 25 cents per share was well ahead of the $0.22 per share that most of those following the stock had anticipated seeing.
Tax reform did have a one-time negative impact on Camping World Holdings. The new laws forced the company to take a $165.4 million in tax-related charges, stemming from the revaluation of deferred tax assets after corporate tax rates fell from 35% to 21%. Going forward, though, the lower rates should help Camping World.
Fundamentally, Camping World did extremely well. Same-store sales growth accelerated to 11.9% as new vehicle sales jumped 18.6% on a comparable basis. Relatively weaker performance in the used vehicle sales area once again held the company back, but Camping World saw a lot of interest in finance and insurance products. Unit sales of new recreational vehicles jumped by half to more than 12,000 units, although average selling prices for those new RVs fell 8% to around $38,200. Used RV sales were up 15% to about 6,100 units, although prices there decreased 5% to fall below the $23,000 mark.
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