Track market-moving stories before they get noisy

The stock market can be a cruel place sometimes. Just when you think things can't get any worse, the selling continues. That's especially true for companies that are struggling to find their footing in an economy where consumers are becoming increasingly selective about how they spend their money. Big-ticket discretionary purchases are particularly vulnerable. When financing costs are high and consumers are feeling the pinch, buying a new recreational vehicle isn't exactly at the top of everyone's priority list.

That's creating some serious headaches for today's Bear of the Day, Zacks Rank #5 (Strong Sell) Camping World ((CWH - Free Report) ). Camping World Holdings is one of the nation's largest retailers of recreational vehicles. The company operates a network of RV dealerships, offering new and used motorhomes, travel trailers, and fifth wheels. It also provides financing, insurance, service, maintenance, and accessories through its Camping World and Good Sam brands.

It's a business that benefited tremendously from the pandemic-era boom in outdoor recreation. Consumers had money to spend, financing was cheap, and RV sales were booming. Unfortunately, that environment has changed considerably. Higher borrowing costs, affordability pressures, and a more cautious consumer have created a much more challenging backdrop for the RV industry.

That weakness is showing up where it matters most to us here at Zacks. I'm talking about earnings estimates. Over the last thirty days, four analysts have lowered their earnings estimates for the current year. Not a single analyst has increased estimates during that period. The bearish sentiment has pushed the Zacks Consensus Estimate for the current year down from 36 cents to just 20 cents per share. That's a decline of nearly 44% in only two months.

Next year's numbers aren't looking much better. Four analysts have also cut their estimates for the following year, pushing the consensus down from 87 cents to 56 cents per share. That's a reduction of more than 35%. Those downward revisions are the primary reason Camping World currently carries a Zacks Rank #5 (Strong Sell).

The industry backdrop isn't doing the company any favors either. Camping World is part of the Automotive – Original Equipment industry, which ranks in the Bottom 13% of our Zacks Industry Rank. That's not exactly the sort of neighborhood I want to be shopping in when the broader market is already dealing with uncertainty.

There are a few stocks in this industry that are in the good graces of our Zacks Rank. These include Zacks Rank #2 (Buy) stocks Adient ((ADNT - Free Report) ) and ChargePoint ((CHPT - Free Report) )

Lower Rates Put RV Stocks Back in the Fast LaneCamping World NYSE: CWH said second-quarter results were pressured by a weaker-than-expected new RV retail market during the peak selling season, prompting the company to reduce its full-year adjusted EBITDA outlook while emphasizing market-share gains, inventory reductions and planned cost savings.

Chief Executive Officer and President Matthew Wagner said the company operated in what it described as the weakest new RV retail environment in more than 15 years. Camping World chose to clear aged and prior-model-year inventory rather than carry those units into the second half, a decision that weighed on vehicle gross profit in the quarter.

Get Camping World alerts:

3 Stocks Gaining Traction in Their Turnaround Stories“This was not the quarter we expected back in April,” Wagner said. “The new RV sales market weakened during the peak selling season, and we made the decision to move through aged and prior model year inventory rather than carry those assets into the back half of the year.”

Revenue Declines as Vehicle Margins Compress Chief Financial Officer Tom Kirn said total second-quarter revenue was $1.9 billion, down 2.1% from a year earlier. New vehicle revenue declined 5% to $869 million, as new unit sales fell 16.4%. Used vehicle revenue increased 1.4% to $580 million, supported by a 5% rise in used vehicle unit sales.

Camping World: when dividend cuts are a good thingThe inventory-clearing actions and competitive promotional environment reduced vehicle margins. New vehicle gross margin was 10.9%, compared with 13.8% in the prior-year period, while used vehicle gross margin was 16.5%, compared with 20.5% a year earlier.

Management said it expects vehicle margins to improve sequentially in the second half, citing early margin progression in July and a cleaner inventory position. Wagner said the company expects full-year new vehicle margins of roughly 11.5% to 12% and used vehicle margins of 17.5% to slightly above 18%.

New vehicle average selling price rose 13% during the quarter, driven largely by product mix and targeted gains in the fifth-wheel and motorized segments. Wagner said the travel-trailer category remained under pressure, while the company gained share in Class C and fifth-wheel products. Used vehicle average selling price was about $29,000 in the second quarter, and management said it could recover toward roughly $30,000 for the full year as sales of higher-priced products typically increase in the fall and winter.

Lower Industry Forecast Drives Revised Outlook Camping World reduced its outlook for the 2026 new RV retail market to 290,000 to 310,000 units, from a prior estimate of 325,000 to 350,000 units. Wagner cited geopolitical tensions in the Middle East, gas prices, affordability concerns, consumer confidence and higher interest rates as constraints on new-RV demand.

The company now expects 2026 adjusted EBITDA of $230 million to $270 million. Management said the lower end of the range assumes approximately 290,000 industry new-RV sales and 715,000 used-RV sales, while the upper end reflects 310,000 new units and 750,000 used units.

Wagner said preliminary SSI data showed new vehicle retail registrations declined 16% through May, and the company expected weak trends to continue into June and July. He said July demand appeared somewhat weaker than June, which management associated with renewed geopolitical tensions overseas.

Despite the softer market, Wagner said Camping World exceeded a 29% share of all new RVs sold in the United States through May. The company expects to hold about 22.5% to 23% total North American new-RV market share for the full year and approximately 8.8% to 9% share in used RVs.

Inventory Cleanup and Cost Program Camping World reported substantial reductions in inventory and floorplan borrowings. Total RV and outdoor retail inventory dollars were down nearly 10% year over year, while floorplan notes declined about $280 million from year-end.

New RV unit inventory was down roughly 17% year over year, while new inventory dollars declined about 5%. Prior-model-year new RV exposure was nearing 1%, down from more than 6% a year earlier. New vehicles aged more than 365 days were reduced by more than 60% from the prior year. Used inventory units were down 18% from the end of 2025. In July, the average age of used inventory was down more than 30% from the end of the first quarter, while used inventory aged more than 180 days was down nearly 50%. The company reduced total selling, general and administrative expense by $26.6 million, or 6.1%, from a year earlier. Management has identified approximately $100 million in incremental annualized structural savings through 20 initiatives, including retiring legacy software, developing in-house systems, renegotiating agreements and simplifying back-office processes.

Kirn said about $50 million of the annualized savings are expected to be implemented by the end of 2026, with the remainder expected by early 2028. The revised 2026 outlook includes roughly $15 million of benefit, mostly in the fourth quarter, and about $35 million is expected to carry into 2027.

Good Sam, Service and Balance Sheet Good Sam Services and Plans gross margin rose to 61.8% from 59.5% a year earlier. The company completed an enterprise-resource-planning overhaul for Good Sam during the quarter, which management said positions the unit to pursue business-to-business opportunities.

Camping World also introduced a tiered service labor-rate structure, charging $99 per hour for installations, $120 per hour for maintenance and $199 per hour for more complex work such as collision repairs. Wagner said service revenue increased following the change, while gross profit remained flat and the effective labor rate held near $165 per hour. He added that parts and accessories sales improved as more customers added products to service jobs.

At quarter-end, Camping World had $224 million of cash, $185 million of unencumbered real estate and $1.4 billion of total outstanding long-term debt. Kirn said the company aims to reduce leverage into the high-five-times range by year-end and retains a longer-term objective of reducing leverage below 3.5 times, and eventually below three times.

About Camping World (NYSE:CWH)Camping World Holdings, Inc NYSE: CWH is a leading specialty retailer of recreational vehicles (“RVs”), RV parts and services, and outdoor lifestyle products. The company operates an extensive network of full-service RV dealerships, providing new and pre-owned RV sales alongside comprehensive maintenance, repair and warranty services. In addition to its dealership operations, Camping World offers a broad assortment of RV parts, accessories and gear through both its physical retail locations and e-commerce platform.

Beyond RV sales and service, Camping World's offerings encompass outdoor cookware, apparel, camping and towing accessories under various proprietary and third-party brands.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Camping World Right Now?Before you consider Camping World, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Camping World wasn't on the list.

While Camping World currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2026. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets.

Get This Free Report