CWH Q2 2025: Used RV Sales Surge 20%, Driving Margin Expansion and Market Share Gains

2025-07-30 | By EarningsIQ Research

Camping World Holdings (CWH) delivered record RV sales and a 20% surge in used unit volume, defying industry headwinds and macro volatility. Management showcased operational discipline by consolidating locations and cutting costs, while leveraging its contract manufacturing advantage to expand margins above 30%. With robust cash flow and a sharpened focus on used vehicles and the Good Sam membership platform, CWH signals confidence in sustaining double-digit growth and further market share gains into 2026.

Summary

• Used RV Volume Momentum: Double-digit growth in used sales is now the core earnings driver.
• Margin Discipline Surfaces: Gross margin topped 30% despite industry price declines and discounting pressure.
• Strategic Platform Leverage: Good Sam and contract manufacturing are positioned for outsized contribution in 2026.

Performance Analysis

CWH delivered over 9% revenue growth in Q2, propelled by more than 20% unit volume increases in both new and used RVs. This performance stands out against a backdrop of industry shipment declines and broader macroeconomic uncertainty, with management attributing results to disciplined execution rather than market share chasing. Used RVs, a higher-margin and less cyclical segment, are now central to the company’s profit model, echoing the COVID-era playbook that previously drove outsized profitability.

Gross margin exceeded 30%, a notable achievement given average selling price (ASP) pressures and competitive discounting across the sector. SG&A as a percentage of gross profit improved by 276 basis points year over year, reflecting aggressive cost rationalization, including the consolidation of 16 locations and a 1,000-person headcount reduction since January. Good Sam, CWH’s membership and services platform, posted record revenue, though profitability was modestly down as investments ramped for long-term growth.

• Unit Economics Focus: Profitability per transaction improved even as ASPs declined, driven by ecosystem monetization (F&I, service, membership).
• Inventory Management: Used RV inventory per location rose over 60%, enabling rapid volume growth but requiring active turn management.
• Balance Sheet Strength: Net cash of $118 million, $75 million in debt repaid, and $247 million in unencumbered real estate provide capital flexibility.

Overall, the quarter marks a decisive pivot to a leaner, more resilient business model, with used RVs and membership economics as the next leg of growth.

Executive Commentary

Strategic Positioning

1. Used RVs as Profit Engine

CWH’s pivot back to used RVs is now the primary lever for earnings growth, with management targeting sustained double-digit volume increases. This shift leverages the company’s centralized procurement and real-time inventory management, enabling rapid flexing to market demand and maximizing gross profit return on investment. Used RVs offer higher margin potential and reduce exposure to OEM pricing volatility.

2. Ecosystem Monetization and Good Sam Expansion

Good Sam, CWH’s membership and services platform, is delivering record revenue and is now a target for tuck-in acquisitions and further investment. The platform’s recurring revenue model, combined with F&I (finance and insurance) and service upsell, increases customer lifetime value and creates multiple touchpoints for retention and trade-in acceleration. Management sees this as a multi-year growth engine, with investments today expected to yield outsized returns over several years.

3. Contract Manufacturing and Pricing Power

CWH’s contract manufacturing relationships allow it to control features, content, and pricing across key RV categories, especially in entry-level and mid-tier segments. This enables the company to offer unique value propositions, defend margins, and rapidly adapt to consumer affordability shifts. As tariffs and model-year price increases hit the industry, CWH expects to be a relative beneficiary, with rising new RV prices also lifting used vehicle values and margins.

4. Leaner Store Base and Productivity Mandate

Location consolidation and cost reduction are yielding higher per-store productivity, with unit count, profitability, and margin per store all rising post-consolidation. Management is clear that store count is no longer a primary metric; instead, the focus is on maximizing revenue and profit per location and per employee, with further fixed cost reductions targeted in the back half of the year.

5. Capital Allocation and M&A Discipline

With a strengthened balance sheet, CWH is prioritizing debt reduction and high-return investments in Good Sam and used RV growth, while remaining opportunistic on acquisitions. The company’s recent success in turning around underperforming acquired locations highlights its operational playbook and return-on-invested-capital focus. Management signals that M&A will remain disciplined and accretive, with no urgency to chase deals that do not fit the core strategy.

Key Considerations

CWH’s Q2 marks a structural shift toward ecosystem-driven profitability and operational discipline, positioning the company for resilience and growth in a volatile macro environment.

Key Considerations:

• Used RV Supply Chain Scalability: Centralized procurement and inventory flex provide a durable advantage in capturing margin and market share.
• SG&A Leverage Path: Further 10 to 15 million dollars in fixed cost reductions are targeted, with headcount and location consolidation ongoing.
• ASP Recovery and Pricing Strategy: Early signs of ASP rebound in July could accelerate margin and EBITDA leverage if sustained.
• Good Sam as Growth Platform: Investments in membership, roadside, and services are expected to drive multi-year revenue and profit expansion.
• Competitive Distress Creates Opportunity: Smaller dealers are showing signs of strain, with CWH positioned as a consolidator and margin leader.

Risks

Key risks include persistent ASP pressure if affordability remains challenged, which could delay SG&A leverage realization and margin expansion. Tariff volatility and OEM cost increases may impact new RV pricing and mix, while over-inventorying in used vehicles could require aggressive discounting if demand softens. Macroeconomic uncertainty, especially interest rate trends, remains a wildcard for discretionary demand. Management’s confidence in the playbook is high, but execution risk around ongoing cost cuts and inventory management remains material.

Forward Outlook

For Q3 2025, CWH guided to:

• Continued double-digit used RV unit growth
• Gross margin to remain above 30%
• Further SG&A leverage, with incremental cost reductions flowing through in Q3 and Q4

For full-year 2025, management maintained guidance:

• Double-digit used sales growth and margin stability
• SG&A improvement of 350 to 400 basis points, with upside dependent on ASP recovery

Management highlighted several factors that underpin the outlook:

• Contract manufacturing scale and pricing flexibility
• Good Sam revenue growth and margin stabilization as investments mature

Takeaways

CWH is demonstrating that operational discipline and ecosystem monetization can deliver growth and margin expansion even in a challenged discretionary market.

• Used RVs Anchor Growth: The company’s focus on used vehicles is driving both volume and margin, with further scalability ahead.
• Margin and Productivity Gains: Gross margin above 30% and rising per-store productivity signal a leaner, more profitable model.
• Outlook Hinges on ASP Recovery: Sustained ASP improvement and ongoing SG&A leverage are the keys to unlocking the next phase of EBITDA growth.

Conclusion

CWH’s Q2 results reinforce its shift to a margin-first, ecosystem-driven business model, with used RVs and Good Sam as durable growth engines. Operational discipline, capital flexibility, and a clear focus on per-unit profitability position the company to outperform as the industry recovers.

Industry Read-Through

CWH’s market share gains and margin expansion highlight the growing advantage of scale, inventory agility, and ecosystem integration in the RV retail sector. Smaller, undercapitalized dealers are increasingly vulnerable, and CWH’s contract manufacturing and membership platform provide a blueprint for sustainable differentiation. As the industry navigates tariff and ASP volatility, the ability to flex between new and used inventory, monetize customer lifecycle, and control fixed costs will define future winners. The results also signal that discretionary consumer segments can outperform if operators adapt quickly and leverage recurring revenue platforms.

CWH Consumer Discretionary Recreational Vehicles Membership Used Vehicles Contract Manufacturing Margin Expansion