Holiday RV Superstores Inc., the RV dealership chain that does business as Recreation USA, lost $469,000 during the three months ended July 31 despite a 96% increase in sales revenue.
The loss during the May-through-July period compares with a profit of $497,000 earned a year earlier.
Holiday RV Superstores’ sales totaled $38.6 million during three months ended July 31.
The cost of acquisitions combined with sales promotions related to the soft retail market for RVs, higher interest rates and fuel prices contributed to the loss during the third quarter of the company’s fiscal year 2000, said Mike Riley, chairman.
Holiday RV Superstores has purchased eight dealerships during the past eight months and now has 14 locations in California, Florida, New Mexico, South Carolina, Virginia and West Virginia.
“Our expected net loss in the quarter, while disappointing, reflects our investments in infrastructure and personnel to position the company for future growth and profitability,” said Ronald Huneycutt, president and CEO.
For the nine months ended July 31, Holiday RV Superstores reported a loss of $509,000, compared with a profit of $1.8 million earned during the same period a year earlier.
The company’s sales increased 91% during the nine-month period to $122.5 million.