What happened

Shares of Camping World (CWH -3.53%) were pulling back today as the country's largest RV dealer posted second-quarter results that were below analyst estimates as the business continued to normalize following the boom during the pandemic.

As of 10:01 a.m. ET, the stock was down 10.6%.

So what

Camping World said revenue in the quarter declined 12.4% to $1.9 billion, missing analyst expectations at $1.97 billion.

The slide in revenue came in spite of record unit sales as Camping World's sales mix continues to shift from new vehicle revenue to used vehicle revenue, where the company believes it has a competitive advantage. 

New vehicle revenue in the quarter fell 25.7% to $800.9 million, and new vehicle unit sales declined by 19% to 18,897. Used vehicle revenue, meanwhile, increased 12.1% to $623 million, with used vehicle units sold up 14% to 17.774. 

Further down the income statement, gross margin fell 301 basis points to 30% due to lower average selling prices of new vehicles, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was down by 50% to $139.3 million.

On the bottom line, adjusted earnings per share dropped from $2.16 in the quarter a year ago to $0.73, which was short of the consensus at $0.78.

CEO Marcus Lemonis said, "We sold the most used units in our company's history, with record-setting used vehicle gross profit. We've opened, acquired, or signed letters of intent on 30 dealership locations year to date. The unprecedented influx of acquisition opportunities has continued and the pipeline is robust. We plan to capitalize on it as we invest ahead of anticipated revenue growth in 2024 and beyond."

Now what

Camping World didn't provide guidance in the earnings release, but investors should be encouraged by Lemonis' comments about returning to revenue growth next year, a sign he thinks the cyclical headwinds are nearly finished.

The company, which has been growing through an acquisition strategy known as a roll-up, continues to add new dealerships, which should pave the way to further growth.

Camping World is also a top dividend payer, with a dividend yield of 9% after today's sell-off. The company declared its third-quarter dividend yesterday, and the payout looks safe after yesterday's report. 

Given the expected return to growth, long-term investors shouldn't be worried about today's sell-off.