Camping World Shares Plummet After Financial Statement Correction
Camping World Holdings, Inc. (CWH) reported a 40% increase in Adjusted EBITDA for the third quarter, driven by record-breaking new and used vehicle sales, with revenue reaching $1.8 billion, a 4.7% year-over-year increase.
However, the company's shares dropped nearly 25% after announcing a correction to accounting misstatements from the previous year and a decline in new-vehicle sales.
“Year-to-date, our company achieved a record 13.5 percent market share of new and used units, an over 200 basis point combined improvement,” stated Matthew Wagner, president of Camping World Holdings, Inc.
Despite the decline, the company noted that total new and used same-store unit volume continued to grow in October, increasing by a low double-digit percentage year-over-year, with used vehicles remaining a compelling value proposition for affordability-focused consumers.
Author's summary: Camping World's shares plummeted despite strong Q3 sales.
- Adjusted EBITDA growth: 40%
- Revenue: $1.8 billion, 4.7% year-over-year increase
- Market share: 13.5%, a 200 basis point combined improvement