Camping World Set to Add 15 Dealerships in the First Quarter, Kicked Off by Acquisition of Ashley Outdoors
Camping World Holdings, Inc. (NYSE: CWH) has closed the acquisition of Ashley Outdoors in Salem, Alabama, intending to add 15 dealership locations in the first quarter of 2024. This move reflects the company's goal to increase its dealership count to over 320 locations in the next five years, driven by continued demand stabilization and confidence in opening additional locations ahead of the selling season. The company also plans future RV dealership acquisitions throughout the 2024 calendar year.
The strategic expansion of Camping World Holdings, Inc. into 15 new dealership locations represents a significant investment in the company's retail footprint. This move is indicative of a broader trend within the recreational vehicle (RV) industry, where companies are scaling up operations to meet a demand that has shown signs of stabilization.
From a market perspective, this expansion could enhance Camping World's market share and provide a competitive edge. The choice of locations, such as Salem, AL and Benton, AR, suggests a targeted approach to regional markets likely to experience growth in RV sales. This could potentially increase revenue streams and improve the company's economies of scale, leading to better margins.
Furthermore, the spread across multiple states indicates a diversification strategy, which can reduce geographical risk and dependence on a single market. However, the costs associated with opening new locations could impact short-term profitability and the success of these new dealerships will depend on effective integration into the company's operations and local market dynamics.
The announcement by Camping World Holdings, Inc. signals a bullish outlook on the RV market and a commitment to growth through physical retail expansion. From a financial perspective, the capital expenditure involved in opening 15 new locations will need to be scrutinized against the projected increase in sales and market penetration.
The timing of the expansion ahead of the selling season is strategic, aiming to capitalize on peak consumer interest. This could lead to an uptick in sales, positively affecting the stock's performance. Investors should monitor the execution of this expansion closely, as it will be crucial for the company to manage the increased operational complexity without compromising on profitability or customer service standards.
It's also important to consider the implications of this expansion on Camping World's balance sheet. The initial investment and ongoing operational costs of new locations could leverage the company's financial position, which investors will need to weigh against the potential for long-term revenue growth.
The expansion of Camping World Holdings, Inc. can be seen as a microcosm of the broader economic recovery and consumer spending trends. The RV industry often acts as a barometer for discretionary spending and the decision to increase dealership count suggests a positive outlook on consumer confidence and disposable income levels.
On a macroeconomic level, this move could contribute to local economies through job creation and increased commerce, particularly in the areas where the new dealerships are set to open. However, it is essential to consider that the RV market is subject to cyclical fluctuations, often correlated with broader economic indicators such as employment rates, fuel prices and travel trends.
The long-term success of these new locations will depend on sustained economic growth and the continued popularity of RVs as a travel and leisure option. Any downturn in the economy could adversely affect the industry, making this expansion a calculated risk that balances current market optimism with potential future volatility.
01/02/2024 - 07:30 AM
LINCOLNSHIRE, Ill. --(BUSINESS WIRE)--
Camping World Holdings, Inc. (NYSE: CWH) (“Camping World”), the World’s Largest Recreational Vehicle Dealer, today announced that it has closed on the acquisition of Ashley Outdoors in Salem, Alabama . Including this location, the Company intends to add 15 dealership locations in the first quarter of 2024 through a combination of opening existing facilities and closing previously announced acquisitions.
Marcus Lemonis, Chairman and CEO of Camping World commented, “As we start 2024, we are driven to work towards our goal of increasing our dealership count to over 320 locations in the next five years. Based on continued demand stabilization, the team is confident in opening 15 additional locations ahead of the selling season. These openings are separate from any future RV dealership acquisitions that may happen throughout the 2024 calendar year.”
Camping World intends to open the following dealership locations in the first quarter of 2024:
Salem, AL – Camping World
Byron, GA – Jayco Macon
Benton, AR – Jayco Little Rock
Cape Girardeau, MO – Camping World
Little Rock, AR – Forest River RV Little Rock
Springfield, MO – Camping World
Melbourne, FL – Camping World
Orange Park, FL – Camping World
Pinellas Park, FL – Camping World
Clermont, FL – Camping World
Ocala, FL – Forest River RV Ocala
Greenville, NC – Forest River RV Greenville
Statesville, NC – Forest River RV Statesville
Lewisville, TX – Camping World
Brooksville, FL
Individuals interested in applying for a position with Camping World may visit http://www.campingworldjobs.com/ .
About Camping World Holdings, Inc.
Camping World Holdings, Inc., headquartered in Lincolnshire, IL , (together with its subsidiaries) is the World’s largest retailer of RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy. Our Camping World and Good Sam brands have been serving RV consumers since 1966. We strive to build long-term value for our customers, employees, and shareholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry’s most extensive online presence and a highly trained and knowledgeable team of employees serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of programs and services uniquely enable us to connect with our customers as stewards of the RV enthusiast community and the RV lifestyle. With RV sales and service locations in 43 states, Camping World has grown to become the prime destination for everything RV. For more information, visit www.CampingWorld.com .
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Camping World and other matters. All statements other than statements of historical facts contained in this press release may be forward-looking statements including statements about the expected pace of growth, timing of the closure of and benefits from announced acquisitions, new store openings, future store count, future demand for our products, and product offerings at future locations. In some cases, you can identify forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expects,’’ ‘‘plans,’’ ‘‘anticipates,’’ ‘‘could,’’ ‘‘intends,’’ ‘‘targets,’’ ‘‘projects,’’ ‘‘contemplates,’’ ‘‘believes,’’ ‘‘estimates,’’ ‘‘predicts,’’ ‘‘potential’’ or ‘‘continue’’ or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including the risk that new store openings and acquisition closings may not occur on the timeline expected or at all, as well as the other important risks described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Annual Report on Form 10-K filed for the year ended December 31, 2022. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240102056630/en/
Brett Andress
InvestorRelations@campingworld.com
Media Outlets:
PR-CWGS@CampingWorld.com
Source: Camping World
What did Camping World Holdings, Inc. (CWH) announce regarding dealership acquisitions?
Camping World Holdings, Inc. (NYSE: CWH) announced the acquisition of Ashley Outdoors in Salem, Alabama, and plans to add 15 dealership locations in the first quarter of 2024.
What is Camping World's goal for the next five years?
Camping World's goal is to increase its dealership count to over 320 locations in the next five years.
Where can individuals interested in applying for a position with Camping World go?
Individuals interested in applying for a position with Camping World can visit http://www.campingworldjobs.com/.
