Camping World at Baird Conference: Strategic Focus on Used RVs

During the Baird Global Consumer, Technology & Services Conference 2025, Camping World (CWH) outlined its strategy to achieve a $7 billion revenue target and an 8% EBITDA margin by focusing on affordability in the used RV market and reducing SG&A expenses by 600-700 basis points. The company reported strong Memorial Day weekend sales growth, outpacing industry trends, and aims to increase its used RV market share, leveraging its Good Sam business and data-driven inventory management; CWH anticipates modest growth in new RV units and expects to grow its bottom line by 60-70% this year, while monitoring potential tax benefits and dealer consolidation.

Analysis

Camping World Holdings Inc. (CWH) presented a strategic pivot towards affordability and substantial growth in the used RV market, alongside a commitment to significant operational efficiencies, during the Baird Global Consumer, Technology & Services Conference 2025. The company aims for a $7 billion revenue target and an 8% EBITDA margin, supported by a planned 600-700 basis point reduction in SG&A expenses, which is projected to drive a 60-70% bottom-line growth this year. Management highlighted the robust performance of its Good Sam business, an asset-light segment contributing approximately $150 million in revenue and $100 million in EBITDA, as a key stabilizing factor. CWH reported strong Memorial Day weekend sales with mid-teens growth, contrasting sharply with industry declines, and has increased its used RV market share from 5% to 9% recently, with a combined new and used market share goal of 15% (already approaching 14-14.5% in early 2025). Operational initiatives include centralizing its used RV buying process and launching rvs.com for peer-to-peer sales, leveraging data science for inventory management. While the new RV market is expected to remain stable with around 350,000 units sold industry-wide, CWH sees significant opportunity in the larger used RV market (750,000 units) and is focused on deleveraging and rescaling operations. The company is also monitoring potential tax provisions that could benefit RV loan deductibility and anticipates dealer consolidation, with a current M&A appetite near zero as it focuses on organic improvement.

Key Decisions for Investors

• Investors should closely monitor Camping World's execution on its targeted 600-700 basis point SG&A reduction and its progress towards the 8% EBITDA margin goal, as these are critical for achieving the forecasted 60-70% bottom-line growth.
• The company's ability to continue gaining market share in the used RV segment, driven by its centralized procurement and rvs.com platform, warrants attention, given this segment's higher profitability and stability relative to new RV sales.
• Consider the impact of management's focus on affordability and exclusively branded products (40% of new RV sales) on maintaining sales velocity and margins, especially if average selling prices face continued pressure.
• Evaluate CWH's progress in deleveraging its balance sheet, which management has identified as a key priority contingent on earnings recovery and operational rescaling.
• Keep an eye on external factors such as potential tax law changes favoring RV loan deductibility and industry dealer consolidation, which could provide additional tailwinds for CWH's performance.