Camping World to Rebrand NASCAR Truck Series Racing Series
NASCAR and Camping World have expanded their partnership (runs through ’22), extending official NASCAR partner status to Camping World subsidiaries Gander Outdoors, Overton’s and The House Outdoor Gear. The newly expanded agreement allows for a rebrand of NASCAR’s Camping World Truck Series, to be renamed as the NASCAR Gander Outdoors Truck Series for the 2019 season. Gander Outdoors won’t have to wait until next year to market to NASCAR fans though, the company is the title sponsor of 2 July races at Pocono (Cup Series on 7.29, Truck Series on 7.28) and has picked up rights (along with all Camping World brands) to activate at NASCAR retail locations (i.e. tracks) nationwide.
Howie Long-Short: Camping World (CWH) Chairman Marcus Lemmonis has been vocal about NASCAR’s impact on the company, saying “nearly a decade ago we felt strongly our entitlement sponsorship would dramatically increase Camping World’s customer base and it’s delivered”; so, it’s no surprise he would look to replicate the growth model with his May 2017 acquisition (formerly known as Gander Mountain).
Earlier this week, Camping World reported a “very strong” (Lemmonis’ words) Q1 ’18 with revenue up +20.4% YoY to $1.06 billion (including same store sales growth of +3.9% to $838 million) and adjusted net income growing +16.5% YoY to $36.9 million, figures depressed by an unusually cold start to the company’s peak selling season. The company said it still expects to generate a mid-single digit increase in ’18 same store sales and reiterated guidance for FY18 revenue ($4.8 billion - $5 billion), but that wasn’t enough for shareholders as the stock price fallen off a cliff (-18.28% to $22.57) since the company reported on Tuesday. Competitors Thor Industries (THO –9.11%) and Winnebago Industries (WGO –7.16%) have also experienced sharp declines this week, as the market now anticipates the cold weather to have an impact on their next earnings report.
Fan Marino: Spurs asst. coach Becky Hammond recently became the 1st woman to interview for an NBA head coaching position. Hammond was among several Spurs coaches interviewed, so she’s not a lock to get the job; but, having a big money sponsor in her pocket won’t hurt her cause. Lemmonis recently went on record with his support of Hammond saying, “I would become a big $$ sponsor of the organization with Camping World and Gander Outdoors, if they hire her. As a Marquette University graduate this would be trailblazing.”
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