Shares of recreational vehicles and related products provider Camping World Holdings (NYSE:CWH) are nosediving today after its second-quarter numbers failed to impress investors. Revenue declined 13.6% year-over-year to $1.9 billion, missing estimates by $70 million. EPS at $0.73 too missed the cut by $0.05.
In Q2, used vehicle revenue increased by 12.1% to $623 million with used vehicle sales rising 14.3% to 17,774 units. Revenue from new vehicles, on the other hand, dropped by 25.7% to $800.9 million with new vehicle sales declining by 19.3% to 18,897 units.
Additionally, revenue from the products, service, and other vertical too dropped by 10.9% to $247.8 million. Despite this trend, Camping World has opened, acquired, or signed LOI (letter of intent) for 30 locations so far this year and continues to invest for anticipated growth over the coming periods.
Further, the company has announced a quarterly dividend of $0.125 per share. The dividend is payable on September 29 to investors of record on September 14. Importantly, this is a ~80% decrease in the company’s dividend and the move comes as it prioritizes capital allocation toward expanding its footprint with the acquisition of RV dealerships.
Overall, the Street has a $33.13 consensus price target on Camping World alongside a Moderate Buy consensus rating. Today’s price erosion comes after a nearly 22% rise in the company’s shares over the past six months.
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