Camping World CEO's new employment terms announced

Published 27/01/2025, 15:12
Camping World CEO's new employment terms announced

LINCOLNSHIRE, IL – Camping World Holdings, Inc. (NYSE:CWH), currently valued at $1.38 billion, has disclosed an updated employment agreement with CEO Marcus Lemonis, effective January 1, 2025. The agreement, set to run until January 1, 2028 with potential for automatic annual extensions, includes a base salary of $1.5 million and a bonus target of 150% of that salary. According to InvestingPro data, the company's stock has shown significant volatility, with a beta of 2.51.

On January 26, 2025, Lemonis received 600,000 restricted stock units (RSUs) under the company's 2016 Incentive Award Plan, vesting over three years, and performance stock units (PSUs) that could vest based on stock price milestones over a three-year period. Analysts maintain a positive outlook on the stock, with price targets ranging from $23 to $35, suggesting potential upside. InvestingPro analysis reveals several additional insights about the company's financial health and future prospects.

If Lemonis's employment ends without cause or he resigns for good reason, he is entitled to certain benefits, including a prorated target bonus, accelerated vesting of equity awards, COBRA payments for 18 months, and a sum equal to his annual salary plus target bonus over one year. His agreement also includes non-compete, non-solicitation, confidentiality, and non-disparagement clauses.

The details of this agreement will be included in Camping World's Annual Report on Form 10-K for the fiscal year ending December 31, 2024. This announcement is based on a press release statement.

In other recent news, Camping World Holdings reported stable third-quarter revenues of $1.7 billion for the fiscal year 2024, despite challenges in used inventory procurement. The company saw a 31% increase in new unit sales, largely due to a strong performance in Class C RV sales. The adjusted EBITDA reached $67.5 million. Notably, Camping World has extended the maturity date of its revolving credit facility to 2028, a crucial move for the company's financial stability given its total debt of $3.57 billion.

BofA Securities initiated coverage on shares of Camping World Holdings, assigning a Buy rating and setting a price target of $30.00. The firm's analysis suggests a potential upside of approximately 43% from the current trading level. Meanwhile, KeyBanc Capital Markets maintained its Overweight rating on shares of Camping World, expressing a positive outlook on the company's medium to long-term opportunities, including organic growth and potential mergers and acquisitions.

Camping World's management indicated a more positive retail environment, though they do not anticipate industry retail levels in 2025 to be significantly different from the previous year. The company also aims to improve gross profit and administrative expenses as a percentage of gross profit by 6-7% in 2025, which is expected to contribute to meaningful EBITDA growth. These are recent developments that reflect the company's ambitious plans for growth, with a goal to exceed 15% market share through dealership acquisitions and improved inventory management.

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