Camping World pays price for ‘rightsizing’ company
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Camping World, the US-based recreational vehicle (RV) retailer that took over former outdoor sports chain, Gander Mountain, in 2017, has reported a fourth quarter loss of $964.9m.
The company incurred $35.7m impairement and restructuring costs related to its 2019 shift to ‘rightsize’ the company which involved the sale of more than 60 locations, primarily rebranded Gander Outdoors stores, to focus on its original core operations.
Marcus Lemonis, Chairman and CEO of Camping World, said: “We are very excited about the current direction of our business. Our 2019 results include the impact of our decision last September to strategically shift away from locations where we do not have the ability or where it is not feasible to sell and service RV’s.
“We took aggressive actions to consolidate our retail operations, reduce product inventory levels and reduce overheads. It is pleasing to report that RV sales so far in 2020 are encouraging and when coupled with the expected benefits arising out of the 2019 strategic shift, we believe we are well positioned to generate improved financial performance this year and beyond.”
For the full year Camping World saw its revenue increase 2.1% to $4.9 billion, with a reduced operational profit – down 5.5% – to $1.3 billion.