Camping World Holdings, Inc. ( CWH Quick Quote CWH - Free Report) — the world's largest recreational vehicle dealer — is set to acquire Edmundson RV in Edinburgh, IN. The acquisition is expected to be completed in the first quarter of 2024. The new location boasts 34 service bays and will cover nearly 18 acres at closing, marking its first exclusive Forest River location in the state. The move further solidifies its top position in Indiana, bringing the company’s location count to four. This aligns with the company's objective of expanding its dealership network to over 320 locations in the next five years. Focus on Expansion
The company’s growth strategy includes acquisitions, new store openings and establishing manufacturer-exclusive locations. In the beginning of 2023, CWH established a goal to expand its store count by 50% over the next five years, adding more than 90 locations. Year-to-date, it has successfully opened, acquired, or signed letters of intent for 30 locations, marking a one-third achievement toward the set target.
CWH emphasizes on expanding its core RV business through dealership acquisitions to accelerate company growth further. The company is also exploring innovative approaches that align with its core strengths and resources. In the second quarter, CWH introduced a new dealership growth strategy called "manufacturer exclusive stores". CWH has secured agreements with several manufacturers to launch these exclusive locations, including Keystone, JACO, Forest River, Airstream, Coachmen, Alliance and Grand Design. These stores will focus on a single manufacturer's new RV lineup while providing used vehicles, service, parts, and finance like traditional dealerships. CWH aims to establish more than 40 exclusive stores in the next five years, with 11 already in operation, about to be open, or in the acquisition process. Once they reach maturity, these locations are expected to generate revenue ranging from $12-$40 million each. Going forward, the company remains optimistic about its growth plans. CWH is adjusting its store growth projection plan, surpassing the initial 50% target, on the back of an exceptional surge in opportunities. The company now anticipates exceeding 320 dealerships by the close of 2028, combining acquisitions, new store openings and the manufacturer exclusive locations. Image Source: Zacks Investment Research
Shares of Camping World have increased 5.7% in the past six months compared with the
industry’s 10.4% rise. Zacks Rank & Key Picks
Camping World currently carries a Zacks Rank #3 (Hold).
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