Lazydays third-quarter revenue increased to $338 million, up 6% from the third quarter of 2021.
New RV sales were down 3% during the third quarter. One analyst noted the drop was much better than the industry average of about 20% down during the quarter.
Lazydays CEO John North attributed the difference to the company’s operations team and a focus on inventory. He said the company has been working diligently on improving inventory, particularly reducing 2022 model year units, finding operational efficiencies and challenging stores to improve.
North, who became CEO two months ago, said his thoughts about the company are still forming. Still, he said he is excited about Lazydays’ “one-of-a-kind” brand, 18 profitable stores and four locations under construction.
“Our wholesale unit volume was up nearly 100% on a same-store basis,” North said. “We made the decision to de-prioritize the used side of the business to get out of stuff that was coming on trades and really to try to turn customers onto the new stuff and get the inventory healthy. We did some discounting. Certainly, the gross margins came down as a result, both in new and in used, but I think that was all designed to make sure that we were in a really strong position in terms of having a lot of model year 2023 stuff on hand.”
He said that while inventory typically builds in the spring and shrinks in the fall, Lazydays is unique because its locations can change. He expects dealer inventory levels to increase.
“If you do not have the stuff on-hand, you cannot sell it,” North said. “We may end up having to discount some things because we have more inventory than we would like, but that is preferable to not be able to make a sale because you do not have something on the ground. I think we have been balancing that.”
The average new RV selling price increased 3.4% and the average used RV selling price decreased 4.8%.
“The third quarter of 2022 marked the return to a more normal operating environment across our company,” North said. “The improving availability of inventory, slowing retail sales environment and rising interest rates caused associated effects to our unit sales level.”
North said Lazydays would be active in the acquisition market, citing a rich pipeline to support acquisitions and new buildouts.
“Our mandate will be to profitably grow the company and to deploy the free cash flow generated,” he said. “(There is clearly a) line of sight to 100 or more stores, as evidenced by several competitors that have already achieved that scale in our space.”
Lazydays began the expansion in October, adding RV sales to its Houston store. Previously the store solely performed service and sold parts.
