Lazydays Holdings, Inc. disappointed investors with its first-quarter 2024 results, falling short of both earnings and revenue expectations for the third consecutive quarter. The company’s financial performance faltered, facing declines in both top and bottom lines compared to the previous year. The announcement led to a 3.8% plunge in the company’s shares during the after-hours trading on May 15.
CEO John North attributed the challenging market conditions and unexpected losses in the first quarter to a pre-tax loss in 2024. Despite these setbacks, GORV remains optimistic about maintaining positive EBITDA and adjusted operational cash flow. The company expresses confidence in the earning potential of its stores and anticipates a resurgence once the industry begins to recover.
Underperforming Earnings & Revenues
Lazydays reported an adjusted loss per share of $1.63, notably wider than the Zacks Consensus Estimate of a 43 cents loss. In the same period last year, the company had reported break-even earnings.
Total revenues amounted to $270.6 million, missing the Zacks Consensus Estimate of $285 million. The company experienced an 8.5% decrease in revenue compared to the previous year. Revenue streams from new vehicle retail, pre-owned vehicle retail, service, body, and parts, among others, all showed disappointing performance.
Operational Performance
Sales in new vehicle retail plummeted by 13.6% year over year to $152.7 million. Pre-owned vehicle retail and service, body, parts, and other revenues declined by 6.1% and 11.6%, settling at $79.6 million and $13.7 million, respectively.
The company’s gross margin shrank by 760 basis points, reaching 14%. Gross margins in new vehicle retail and pre-owned vehicle retail dwindled by 950 and 850 basis points to 3.7% and 11.8%, respectively.
Financial Position
As of March 31, 2024, the company’s cash balance stood at $39.4 million, down from $58.1 million at the end of fiscal 2023. Long-term debt, non-current portion, net totaled $27.8 million in comparison to $28.1 million at the end of fiscal 2023.
GORV currently holds a Zacks Rank #2 (Buy).
Consideration of Other Stocks
Investors may consider other top-ranked stocks in the Consumer Discretionary sector.
Strategic Education, Inc. holds a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise average of 36.2% and has seen a 50.2% increase in stock value over the past year.