Camping World Holdings, Inc. (NYSE: CWH) (the “Company”),
operates the nation’s largest network of recreational vehicle
(“RVs”) sales, RV service, RV parts and accessories and outdoor
products. Today, the Company announced that management and its
board of directors approved a plan to strategically shift away from
locations where the Company does not have the ability or where it
is not feasible to sell and/or service RVs (the “Plan”).
Currently, the Company operates 165 locations that sell and/or
service RVs, with over 30 RV dealership locations opened or
acquired since January 1, 2018. In addition, the Company operates
37 locations which do not sell and/or service RV’s but sell its
assortment of outdoor lifestyle products. At certain locations that
do not sell and/or service RVs, the Company is in the process of
attempting to acquire and/or obtain the developmental consents,
approvals and permits necessary for the sale and/or service of
RV’s. The Company also operates TheHouse.com, primarily an
ecommerce business, with five current specialty retail locations,
and recently sold thirteen Uncle Dans and Rock Creek specialty
retail locations.
The Company is in the early stages of evaluating the impact of
the Plan and has had preliminary discussions regarding the sale,
repurposing, relocating or closing of certain locations, with the
current expectation of either selling, repurposing, relocating or
closing approximately 27 to 37 locations. The actual number of
stores the Company sells, repurposes, relocates, or closes may
change. As part of the Plan, the Company is also evaluating the
impact on the Company’s supporting infrastructure and operations
and expects the majority of the activities contemplated under the
Plan to be completed by year-end.
Marcus A. Lemonis, Chairman and Chief Executive Officer, stated,
“We believe the sale and/or servicing of recreational vehicles is
our core and most important offering and, with the RV and outdoor
consumer crossover, we believe there is an opportunity to continue
growing our market share and improve our financial performance
through the operation of locations with RV sales and/or service
and, when feasible, our hunting, fishing and camping products. We
will continue to operate our RV sales and/or service locations
under three banners, Camping World, Gander RV and Outdoors and
Gander RV.”
Mr. Lemonis added, “We will continue to open new RV dealerships
and opportunistically make RV dealer acquisitions. To that end, we
recently opened, or plan to open, new RV dealerships under the
Camping World, Gander RV and Outdoors, Gander RV and Airstream
banners in Coldwater, MI; Springfield, IL; Breaux Bridge, LA;
Wichita, KS; Greenville, NC; Cicero, NY; Marion, IL; Denton, TX;
Ashland, VA; Ft. Pierce, FL, Belleville, MI, Henderson, NV,
Lakeville, MN, Hermantown, MN, Forest Lake, MN and Oklahoma City,
OK. We are also very pleased to announce the acquisition of two new
RV dealerships, Richards RV Center located in Quincy, MI and
Diamond RV Center located in West Hatfield, MA.”
About Camping World Holdings,
Inc.
Camping World Holdings, headquartered in Lincolnshire, Illinois,
is the leading outdoor and camping retailer, offering an extensive
assortment of recreational vehicles for sale, RV and camping gear,
RV maintenance and repair, other outdoor and active sports
products, and the industry’s broadest and deepest range of
services, protection plans, products and resources. Since the
Company's founding in 1966, Camping World has grown to become one
of the most well-known destinations for everything RV, with
locations in 36 states and a comprehensive e-commerce platform.
For more information, please visit www.CampingWorld.com.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including, without limitation,
statements about our strategic shift, the financial impact and
timing of implementation of this change in strategy, expected store
closures and openings, business plans and goals, including the
ability of our strategy shift to provide us with greater
flexibility and to maximize stockholder value, and our beliefs
regarding our competitive position. These forward-looking
statements are based on management’s current expectations.
These statements are neither promises nor guarantees, but
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, including, but not limited to, the
following: our ability to implement our strategic shift; any
remediation of the material weaknesses in our internal control over
financial reporting; the availability of financing to us and our
customers; fuel shortages, or high prices for fuel; the well-being,
as well as the continued popularity and reputation for quality, of
our manufacturers; general economic conditions in our markets and
ongoing economic and financial uncertainties; our ability to
attract and retain customers; competition in the market for
services, protection plans, products and resources targeting the RV
lifestyle or RV enthusiast; our expansion into new, unfamiliar
markets, businesses, or product lines or categories, as well as
delays in opening or acquiring new retail locations; unforeseen
expenses, difficulties, and delays frequently encountered in
connection with expansion through acquisitions; our failure to
maintain the strength and value of our brands; our ability to
successfully order and manage our inventory to reflect consumer
demand in a volatile market and anticipate changing consumer
preferences and buying trends; fluctuations in our same store sales
and whether they will be a meaningful indicator of future
performance; the cyclical and seasonal nature of our business; our
ability to operate and expand our business and to respond to
changing business and economic conditions, which depends on the
availability of adequate capital; changes in consumer preferences;
our reliance on eight fulfillment and distribution centers for our
retail, e-commerce and catalog businesses; risks associated with
selling goods manufactured abroad; our dependence on our
relationships with third party providers of services, protection
plans, products and resources and a disruption of these
relationships or of these providers’ operations; whether third
party lending institutions and insurance companies will continue to
provide financing for RV purchases; our ability to retain senior
executives and attract and retain other qualified employees; our
ability to meet our labor needs; risks associated with leasing
substantial amounts of space, including our inability to maintain
the leases for our retail locations or locate alternative sites for
our stores in our target markets and on terms that are acceptable
to us; our dealerships’ susceptibility to termination, non-renewal
or renegotiation of dealer agreements if state dealer laws are
repealed or weakened; our failure to comply with certain
environmental regulations; a failure in our e-commerce operations,
security breaches and cybersecurity risks; our inability to enforce
our intellectual property rights and accusations of our
infringement on the intellectual property rights of third parties;
disruptions to our information technology systems or breaches of
our network security; realization of anticipated benefits and cost
savings related to recent acquisitions; potential litigation
relating to products we sell as a result of recent acquisitions,
including firearms and ammunition; and whether we are able to
realize any tax benefits that may arise from our organizational
structure and any redemptions or exchanges of CWGS, LLC common
units for cash or stock.
These and other important factors discussed under the caption
“Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2018, as updated by our Quarterly Report on Form 10-Q
for the period ended June 30, 2019, and our other reports filed
with the SEC could cause actual results to differ materially from
those indicated by the forward-looking statements made in this
press release. Any such forward-looking statements represent
management’s estimates as of the date of this press release. While
we may elect to update such forward-looking statements at some
point in the future, we disclaim any obligation to do so, even if
subsequent events cause our views to change, except as required
under applicable law. These forward-looking statements should not
be relied upon as representing our views as of any date subsequent
to the date of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190903005866/en/
Investors: John Rouleau John.Rouleau@CampingWorld.com Media
Outlets: Karen Porter PR-CWGS@CampingWorld.com
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