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Camping World Holdings (CWH) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Jul 30, 2026

Source: earnings call transcript

Executive summary

Camping World Holdings Q2 FY26 — Strategic Inventory Cleansing and Cost Efficiencies Amidst Weak RV Market

Camping World navigated a challenging quarter marked by a significant weakening in the new RV market, leading to a revised adjusted EBITDA outlook. The company proactively cleansed aged inventory, which pressured vehicle margins but positioned them for a leaner second half. Despite headwinds, they achieved market share gains in both new and used units, expanded Good Sam margins, and initiated substantial SG&A efficiency programs, focusing on controllable variables to build a more resilient business.

Highlights

5

  • Gained new unit market share through May, exceeding 29% of all new RVs sold in the US.

  • Used vehicle unit sales grew over 5% in the quarter, representing share gains.

  • Good Sam services and plans gross margin expanded to 61.8% from 59.5% a year ago.

  • Reduced total SG&A by $26.6 million, or 6.1% year over year.

  • Prior model year exposure of new RVs is nearing 1%, down from over 6% a year ago.

Concerns

5

  • Adjusted EBITDA outlook reset to $230 million-$270 million, down from previous guidance.

  • New RV sales market weakened during the peak selling season, with industry volume trends remaining soft July month-to-date.

  • New vehicle gross margin was 10.9% compared to 13.8% a year ago, pressured by inventory cleansing.

  • Used vehicle gross margin was 16.5% compared to 20.5% a year ago, also impacted by inventory cleansing.

  • Industry new RV unit sales expected to track in the 290,000-310,000 unit range for the full year, down from 325,000-350,000 units.

Guidance & targets

CategoryTargetConfidence
Adjusted EBITDA outlook
$230 million-$270 million
high materiality
High
New RV Industry Unit Sales
290,000-310,000 units
high materiality
High
Used RV Market Unit Sales
715,000-750,000 unit range
medium materiality
High
Incremental Annualized SG&A Savings
$100 million
high materiality
High
SG&A Savings Execution Timeline (First $50M)
$50 million
medium materiality
High
SG&A Savings Execution Timeline (Balance)
Balance of $100 million
medium materiality
High
SG&A Savings Benefit in 2026
Roughly $15 million
low materiality
High
SG&A Savings Carryover into 2027
About $35 million
medium materiality
High
Total Identifiable Tailwinds into 2027
Roughly $70 million
high materiality
High
Net Debt Leverage Target (Long-term)
Below 3.5x or below 3x
high materiality
High
Net Debt Leverage Target (End of 2026)
Deep into the fives
medium materiality
High
New Vehicle Gross Margin
11.5%-12%
medium materiality
Medium
Used Vehicle Gross Margin
17.5%-18%
medium materiality
Medium
Used ASPs
Around $30,000 or a little higher
low materiality
Medium
New ASPs
$39,500-$40,000
low materiality
Medium
Total Market Share (New and Used)
15%
medium materiality
High
Total Market Share (New and Used)
20%
medium materiality
High
Used Market Share
12%+
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Total Company
Total revenue for the second quarter.
$1.9 billion-2.1%——
New Vehicle
Revenue and gross margin impacted by deliberate movement through aged and prior model year inventory. ASP increased by 13% driven by mix.
Unit sales: -16.4% YoYGross margin (YoY): 13.8% (prior year)
$869 million-5%—10.9% gross margin
Used Vehicle
Revenue and gross margin impacted by deliberate movement through aged and prior model year inventory. Used unit sales grew over 5%.
Unit sales: +5% YoYGross margin (YoY): 20.5% (prior year)
$580 million+1.4%—16.5% gross margin
Good Sam Services and Plans
Gross margin expanded, supported by ERP overhaul and B2B opportunities.
Gross margin (YoY): 59.5% (prior year)
———61.8% gross margin

Product announcements

ProductTypeDetails
In-house RV Sales CRMlaunch

Risks & headwinds

Weak New RV Retail Environment Q2 FY26 and ongoing

Weakest in over 15 years; new vehicle retail registrations declined 16% through May.

Mitigation:Gaining new and used unit share, accelerating Good Sam, driving SG&A efficiency, proactive inventory cleansing.

Geopolitical Tensions Q2 FY26 and ongoing

Correlation between Middle East conflict and new unit sales; re-escalation in July caused overnight sales dip.

Mitigation:Focusing on controllable variables like inventory, cost actions, used growth, and Good Sam execution; not waiting for external factors to stabilize.

Affordability and Consumer Confidence Ongoing

Higher rates, gas prices, and consumer confidence remain real constraints on new demand.

Mitigation:Growing used business for affordable entry, creating innovative products, focusing on higher net worth individuals for new sales, tiered service labor rates to improve affordability.

Promotional Pressure from Competitors Next several months

Competitor dealers focused on cleansing aged inventory, putting pressure on pricing and promotions.

Mitigation:Proactive inventory cleansing in Q2 to be in a healthier position; disciplined approach to replenishment.

Travel Trailer Demand Weakness Ongoing

Industry continues to struggle with travel trailer demand.

Mitigation:Targeted share gains in fifth wheel and motorized segments, which yield higher ASPs and cater to a more resilient consumer.

What to watch in Q3 FY26

Vehicle Gross Margins

Q3 FY26
Current New: 10.9%, Used: 16.5% (Q2 FY26)
Target Sequential improvement in Q3 FY26

Why it matters

Indicates the effectiveness of inventory cleansing and pricing strategies in a challenging market.

We expect these margins to look better sequentially in the second half of the year, supported by the early signs of margin progression we've seen thus far in July.

Find out whether CWH delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you bridge the prior adjusted EBITDA outlook to the revised range, focusing on new/used ASPs and margins, and what should we model for new/used margins for the year, including sequential improvement?

New ASPs rebounded well, while used ASPs were slightly lower than expected. The revised EBITDA is primarily due to lower new unit volume and misses in new/used margins. Management expects new margins to be 11.5-12% and used margins 17.5-18% for FY26, with sequential improvement in Q3 and a historical step-down in Q4, though Q3-Q4 might be more even this year.

“So when we think about 2026 right now, we're thinking that new margins could land anywhere in the range of 11.5, 12% for the entirety of 2026. And use margins could land anywhere in the range of 17.5 to a little over 18% for the entirety of 2026.”

asked by Unknown Speaker · answered by Matt Wagner

3 min read 7 chapters

Detailed narrative

Strategic Inventory Management

Camping World made a deliberate decision to move through aged and prior model year inventory during Q2, which pressured vehicle gross profit but was deemed the right strategic call. This effort resulted in prior model year new RV exposure nearing 1% (down from over 6% a year ago) and a 60% reduction in new vehicles aged over 365 days. Used inventory units are down 18% compared to year-end 2025, with the average age of used inventory down over 30% and aged inventory over 180 days down almost 50%.

SG&A Efficiency Program

The company identified initiatives expected to deliver approximately $100 million of incremental annualized SG&A savings. This broad program involves 20 specific initiatives, including retiring legacy software, replacing third-party systems with in-house technology, renegotiating agreements, and simplifying back-office processes. A new enterprise-grade RV sales CRM, developed in-house, is being rolled out and is anticipated to eliminate over $20 million of annualized costs once fully deployed.

New RV Market Dynamics and Share Gains

Despite a 16% decline in new vehicle retail registrations through May (per preliminary SSI data), Camping World gained new unit market share, exceeding 29% of all new RVs sold in the US. This was achieved while growing new vehicle average sales price by 13%, driven by targeted share gains in the fifth wheel and motorized segments. The company attributes the market weakness to geopolitical tensions, gas prices, affordability, consumer confidence, and higher interest rates.

Used RV Business Strength

The used RV segment remains paramount to the company's long-term success, offering a more affordable path into the RV lifestyle and creating opportunities across F&I, Good Sam, and service. Same-store used vehicle unit sales grew over 5% in the quarter. The company expects the used RV market to track within the 715,000 to 750,000 unit range for the full year, believing it to be stable and less affected by the issues impacting the new RV market.

Good Sam Performance and ERP Overhaul

Good Sam services and plans gross margin expanded to 61.8% from 59.5% a year ago. The company completed its ERP overhaul for Good Sam in Q2, enabling the team to pursue B2B opportunities with its extensive platform. Management remains confident in Good Sam's ability to be a long-term growth driver with additional top-line opportunities.

Service Strategy and Labor Rates

The company implemented a new tiered labor rate structure for consumers to make service more affordable. This includes $99/hour for installations, $120/hour for maintenance, and $199/hour for complex jobs like collision repair. While this has led to increased revenue, gross profit has remained flat due to the reduced rates. The effective labor rate has settled around $165/hour, similar to previous levels after discounting.

Costco Initiative Update

The Costco program was reset in April to reimagine the lead process and marketing strategy, restarting in May. While roadshows have shown an uptick in general sales volume in specific regions, the program is not expected to hit its original goal of 3,500-5,000 sales this year, currently in the hundreds of units. It is now viewed as a play for next year, given the seasonal demand fall-off in Q3/Q4.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.