Lazydays CEO John North said consumer traffic at the dealership group’s stores increased steadily each month in 2023. He said recent concerns over the banking industry have not affected consumers’ ability to access credit from RV lenders.
Lazydays reported first-quarter 2023 profits of $1.2 million, down 95.7% from the first quarter of 2022. Total revenues declined 21.4% from the first quarter of 2022.
New RV sales fell 18.9% in the quarter and used RV sales dropped 15.6%.
North was positive about the dealership group’s position on 2022 models. He said Lazydays had about 400 RVs from the 2022 model year on lots as of April 27. The company sold just shy of 2,000 new RVs in the first quarter.
“Furthermore, we are still generating healthy profits in 2023,” he said, “and some 2024 units that have recently arrived. … I think in terms of the Q1 cadence and into April, it got better sequentially. I would say March was significantly better than January and February. … (In) March we saw some things come to life, and April’s pacing ahead of March. So that is encouraging.”
Used RV demand has remained strong. North said he sided with other industry leaders who are leaning into used RV sales as a growth strategy.
“I agree 100%, with that notion, and I think we are, as an organization, trying to do more there,” North said, “I think that there is opportunity for us to potentially find additional revenue there if we can source units.”
Clearing out the final 2022 model year RVs is requiring “quite a bit” of discounting, North said. He credited manufacturers for continuing to idle production after a “shock in supply” last summer left dealers too heavy in 2022 models. North said some dealers, though, have “significantly unhealthy” 2022 inventory.
“I know what we are having to do to move those,” he said. “So, what does that do? Does that cause any unnatural reactions or irrational behavior when it pertains to the new model year, just because people need to lighten up? So far, so good.”
