Camping World acquisitions are building a '360-degree' business
Camping World on Tuesday reported total first quarter revenue rose 20.4% to $1.1 billion as total company same-store sales in the quarter rose 3.9% to $838.6 million.
The company's gross profit rose 21% to $304.8 million as gross margin expanded by 13 basis points to 28.7%. Income from operations fell to $49.8 million, net income fell to $17.3 million and diluted earnings decreased to 8 cents per share and reflected $19.7 million of pre-opening expenses related to its several Gander Outdoors store openings.
The company's Good Sam Club loyalty club achieved an all-time high of 1.84 million members at the end of the quarter, according to a company press release. Revenue in the retail segment rose more than 21% to more than $1 billion as total retail same-store sales rose 3.9% to $839 million.
Camping World CEO Marcus Lemonis on Tuesday called the company's Good Sam Club loyalty club "our most important asset" and outlined a vision of it as an ecosystem for outdoor enthusiasts who could move within its many operations to take advantage of each niche, whether it's camping, fishing, hunting, boating or hitting the road.
"Our goal is not just to sell the products that we carry in stores and online, but to grow our customer file, expand our base of Good Sam Club members and then cross-sell a broad array of products and services into a growing base of customers and Good Sam Club members," he told analysts during a conference call, according to a transcript from Seeking Alpha.
Much of the company's performance in the quarter — including total revenue, number of recreational vehicles sold, total same-store sales, retail sales and same-store sales, gross profit and gross margin — reached record highs compared to previous first quarters, according to the release.
The company has been in expansion-through-acquisition mode, announcing five new acquisitions with six locations across five states in the first quarter alone. "Collectively, our recently acquired outdoor and active sports businesses generated over $39 million in the first quarter," Lemonis said. "Now while it is still a relatively small part of our overall business, these businesses are performing nicely and we are seeing good growth both online and in stores."
And the company is not done — Lemonis also said the company continues to see plenty of opportunities on the acquisition front. The company is opening eight new Supercenters later this year and early next year, with some featuring all of the company's brands. With expansion to Wisconsin and Minnesota, the company will be bringing its entire ecosystem into new markets; in all, Camping World has announced plans to open new Supercenters there as well as in Georgia, Illinois and Ohio by the end of 2018 and in Louisiana, Illinois and Kansas by first quarter 2019.
"The pieces of the puzzle have come together over the last 12 months with the strategic acquisition of various online and retail operations, all specializing in a niche," he said. "With the new outdoor and active sports businesses, we are building a 360-degree omni-channel business for outdoor and active sports enthusiasts."
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