The U.S. economy has been expanding for the past decade. At some point the economy will reach an inflection point and another recession will appear on the horizon. The economy has been aided by bailouts, record low interest rates and tax cuts. I believe the economic stimulus has benefited few people and has not been even distributed evenly among the masses. If the economy falters then it could fall hard. There is now an international manhunt for signs of another recession. That puts cyclical names like Camping World (CWH) in focus.
The company provides a comprehensive portfolio of services, protection plans, products, and resources for RV enthusiasts. The company believes it is one of the only providers of this unique set of services. According to the company, about 9 million households in the U.S. own an RV, and of that installed base, Camping world has about 3.7 million RV-related active customers.
RV shipments for the month of June were 36,524, down 10% Y/Y. Through year-to-date June 2019, shipments were nearly 216,000, down 20% Y/Y. Falling RV shipments create more headwinds for Camping World and other RV-related names like Thor (THO), LCI Industries (LCII) and Patrick (PATK). Read more: