Camping World reported record-setting gross profits in used RV sales and Good Sam plans, but overall profits fell steeply from the first quarter of 2022.
Camping World said gross profits overall fell by 21.3% in the first quarter of 2023 from the first quarter of 2022. Net income plunged 95.4% from the first quarter of 2022 as the RV dealership group eked out $4.9 million in net income in the first quarter of 2023.
“As we predicted, despite softer new vehicle demand and gross margin in the quarter, we saw record setting gross profit performance in used vehicles and Good Sam Services and Plans,” Chairman and CEO Marcus Lemonis said. “What is most unusual about this moment is the rapid and recent influx of dealership acquisition opportunities, which we have not seen since we went public.”
Since March 14, Camping World has announced six acquisitions totaling eight stores.
“Based on our acquisition activity year to date,” Lemonis said, “we anticipate the pipeline will fill up, and we plan to capitalize on it.”
Camping World sold a record 12,432 used RVs in the first quarter of 2023, totaling a record $444.7 million in revenue.
Slowing new RV sales and rising interest rates increased the dealership group’s floorplan interest expenses. In the first quarter of 2023, Camping World totaled $20.8 million in floorplan interest. In all of 2021, Camping World paid $14.1 million in floorplan interest.
