Why Camping World Holdings Tumbled 14% Today

[ad_1]

What happened

Shares of Camping World Holdings (NYSE:CWH) were tumbling 14% in late day trading Thursday, despite the RV retailer and lifestyle leader reporting fourth-quarter results that handily outstripped analyst expectations.

So what

Camping World continued to benefit from consumer desire to get away during the pandemic as new vehicle sales surged 38% to 13,274 units even as used sales eased back 3% to 6,930 units. Combined, the RV retailer sold over 20,200 units in the quarter, a 20% gain year over year.

Smiling woman in front of an RV

Image source: Getty Images.

The number of active customers increased 3.8% to more than 5.3 million while the number of Good Sam Club loyalty program members decreased slightly by 1.7% to just under 2.1 million, primarily due to store closures Camping World made as part of its 2019 Strategic Shift program to realign the company’s footprint.

That trickled down to the bottom line, with adjusted earnings of $0.48 per share trouncing analyst estimates of just $0.26 per share.

Now what

The larger market indexes fell sharply heading into the market close, but Chairman and CEO Marcus Lemonis said, “We have one focus in our company and that’s on our long-term plan.”

READ:  LoveSac: What Investors Need to Know

With the stock having rallied nearly 1,000% from its low point last year and remaining in such a strong position, giving up some of the gains is probably a small trade-off for investors.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.



[ad_2]
View more information: https://www.fool.com/investing/2021/02/25/why-camping-world-holdings-tumbled-14-today/

Xem thêm bài viết thuộc chuyên mục: investing

Related Articles

Leave a Reply

Back to top button