Lazydays reported third-quarter 2023 financial results of a net loss from a profit in the third quarter of 2022.
Revenues fell 15.9% from the third quarter of 2022 to $280.7 million. The sales drop resulted in a loss of $5.6 million from a $7.7 million profit in the third quarter of 2022.
Results fell across all metrics. New RV sales dropped 20.7% from the third quarter of 2022. Used RV sales fell 17.6%. F&I revenue dropped 19.7%. Services and parts revenue fell 8.8%.
CEO John North said, “We have been removing costs from the organization. We have eliminated all unnecessary overhead, renegotiated with key vendors and switched to lower-cost providers in other situations, and made the difficult decisions around reducing headcount and modifying pay plans in our stores.”
As the dealership group cuts cost it has continued to cull aged inventory. North said the dealership group is down to about 100 RVs from the 2022 model year. Nearly half (47%) of inventory now is 2024 model year RVs.
“We have reduced our new unit days supply from 250 units at the end of last year to 171 this year,” he said, “and have intensified our used inventory procurement efforts, more than doubling our previous record in both the months of September and October.”
Vice President of Supply Chain Amber Dillard said the company’s aged inventory includes numerous higher-end motorized RVs and RVs with higher sales prices.
“Certainly (there is) a demand for those, but we do believe we are in a healthier inventory position,” Dillard said, “and we will continue to head into the next model year poised to take advantage of them.”
North said Lazydays’ restocking has been focused on lower-end, entry-level travel trailers.
“We have a couple of hundred units coming at the low end that we are going to be pushing into the marketplace,” North said. “I think affordability is a theme that is generally talked about across the segment and particularly with some of our competitors. I think we agree with that as well. Ultimately, a lot of our buyers are payment buyers. If we can find ways to try to support that and to bring some entry-level product into the portfolio, I think that has been helpful.”
