Camping World Resets for a Long RV Winter: Inventory Discipline, Cost Cuts, and a Used-First Playbook
The company slashed its EBITDA outlook as the new RV market hits a 15-year low, but management is betting on leaner inventory, a $100M cost program, and a structural shift to used and service.
CWH · Earnings Call · 2026-07-30
A Quarter of Reset
Camping World entered 2026 with cautious optimism, but the second quarter forced a hard reset. The new RV retail market proved to be the weakest in over 15 years, and the company responded not by waiting for a recovery, but by deliberately clearing aged inventory at the expense of near-term margins. As CEO Matt Wagner put it,
We are resetting our adjusted EBITDA outlook to $230 million to $270 million. Reflective of the trends we see today and what has proven to be an exceptionally volatile market, we are focusing on the variables we have more control over: leaner inventory, structural cost actions, used growth, and stronger Good Sam and service execution.
The guidance cut—from $275–$325 million—mirrors a sharp downgrade in industry expectations. The company now sees new RV retail of 290,000–310,000 units for the full year, down from its previous 325,000–350,000 range. Management cited geopolitical tensions in the Middle East as an acute demand suppressor: “We recognize a correlation in the second quarter between geopolitical tensions in the Middle East and new unit sales.” — Matt Wagner, Chief Executive Officer · 2026-07-30 The result was a brutal quarter for vehicle gross margins: new vehicles fell to 10.9% from 13.8%, and used to 16.5% from 20.5%. Yet the team framed this as a necessary trade-off: “That decision pressured vehicle gross profit in the quarter, but it was the right call.” — Matt Wagner, Chief Executive Officer · 2026-07-30
The company is betting that its leaner, fresher inventory—with prior-model-year exposure down from over 6% to near 1%—will give it an edge as the industry continues to digest excess supply. The balance sheet remains stretched: liabilities to assets stood at 93.2% in Q1 2026, underscoring the urgency to convert inventory into cash and reduce net leverage.
Used Pivot and the $100M Cost Program
The strategic response is a sharper pivot to the used RV business, which management believes offers a more affordable path into the lifestyle and a more defensive earnings stream. Same-store used units grew over 5% in the quarter, and the company sees used as a long-term growth engine, targeting used market share of 12%+ over the next few years. This pivot is complemented by an aggressive cost program: management identified $100 million of incremental annualized SG&A savings, roughly half of which is expected to be executed by end-2026. CFO Tom Kirn highlighted the areas of attack: “It is a combination, like Matt gave the example of sales CRM. That's the second CRM that we've launched this year. So I think you'll continue to see us make enhancements on the technology side. And that not only saves on the actual staff piece, but also on the consulting fees and some of the licensing fees.” — Thomas Kirn, Chief Financial Officer · 2026-07-30 The company also introduced a new labor rate structure for its service bays—$99/hour for installs, $120 for maintenance, $199 for complex jobs—a move that has lifted revenue while keeping gross profit flat, and is designed to drive more customers into the ecosystem. Operating efficiency is now the central pillar of the turnaround story.
Affordability and the Road Ahead
Camping World is not counting on a consumer recovery any time soon. As Wagner said, “We are not waiting on affordability or consumer confidence to stabilize. We are focusing on building a better business with better operating leverage at the end of the cycle.” — Matt Wagner, Chief Executive Officer · 2026-07-30 The company is leveraging its mix toward higher-ASP segments like fifth wheel and Class C, where it has gained significant share—new ASPs rose 13% year-over-year. Yet even as it pushes premium, it is also betting on the affordability of used vehicles to sustain volume.
The tone is a marked contrast from earlier calls, where management was more confident about hitting its previous guidance. In April, Wagner projected used ASPs to land around $31,500; now they expect roughly $30,000 for the full year. As he said on that April call: “We believe that we're still on pace for our used ASPs to land in that $31,500 range, give or take.” — Matt Wagner, Chief Executive Officer and President · 2026-04-30 The shift reflects a more sober view of consumer spending power. In October, Marcus Lemonis had emphasized the need to enter 2026 with clean inventory: “We have sort of laid down the gauntlet with the team on wanting to make sure that we're going into 2026 with, again, clean inventory, no excuses in 2026.” — Marcus Lemonis, CEO · 2025-10-29 That discipline is now showing up in the numbers, even as it weighs on near-term margins.
The stock has been under pressure, down over 70% from its 2021 peak and another 10% in the past 90 days, reflecting the market's skepticism about the new RV cycle. But management is betting that the combination of a leaner balance sheet, a more efficient cost base, and a defensive used-and-service mix will make Camping World a more resilient business through the downturn.