Used RV sales at retail chain Camping World Holdings increased 14.6% in the third quarter, while new-vehicle sales declined, the company reported on its earnings call last week.
Total RV sales increased 1.3% to 28,653 units, which was partly driven by the bump in used RV sales. Used sales rose to 10,061 units in the third quarter, while new-vehicle sales declined 4.7% to 18,592 units.
“I think our used inventory as of today is around $170 million,” Chief Executive Marcus Lemonis said on the call. “It’s up substantially. And we’re seeing the dividends not only in the increase in sales but the increase in margins. We’re starting to see the margins slowly creep back up, not so much on the new side because it’s still a competitive landscape. But because of our shift to used, we’re starting to see some of the benefits of that.”
Growing pre-owned inventory is one of Camping World’s key initiatives to increase profitability. Other goals include improving the overall customer experience; improving employee and associate experience; growing top-line profitably; and investing in technology that will improve user experience and operating efficiencies.
“We applaud Camping World Holdings’ outlined core improvement path,” said Timothy Conder, senior analyst at Wells Fargo Securities, in a report provided to Powersports Finance. Conder cited the company’s strategy and its position as a market leader as positive signs for growth in the next few years.
Additionally, the company has plans to leverage its customer management system to better understand the buying behavior of consumers.
“Camping World Holdings has more than 5.3 million active RV customers who have transacted with the company in the past 24 months,” Conder said. “Its database has more than 11 million customers. The company has a customized customer relationship management system and appears in the very early innings of using database analytics to better understand its customers’ behavior and needs.”