Lazydays (GORV) Faces Q4 Challenge with $108 Million Net Loss, Eyes 2024 Turnaround

Lazydays Holdings Inc. (NASDAQ: GORV) has disclosed its financial outcomes for the fourth quarter ending December 31, 2023, marking a period of substantial operational and strategic evolution amid challenging economic conditions.

The fourth quarter of 2023 presented a challenging operating environment for Lazydays, attributed to industry-wide economic pressures. Gross profit on vehicle sales showed improvement during these months, benefiting from a higher mix of current model year units sold, which contributed to an increase in gross profit dollars.

The quarter saw a decline in the firm’s revenue to $198.0 million from $243.5 million in the corresponding quarter of 2022 and a significant net loss of $108.0 million, compared to a net loss of $1.4 million in the fourth quarter of 2022, primarily due to a non-cash goodwill impairment charge of $118.0 million.

Lazydays Holdings Fails to Meet Expectations in Q4

When juxtaposed with the expectations for the quarter, comprising an Earnings Per Share (EPS) of -$0.56 and revenue of $227.68 million, Lazydays’ performance delineates a stark variance. The actual revenue fell significantly short of projections, and instead of anticipated profits, the company reported a substantial net loss. The adjusted net loss per diluted share was $1.09, starkly contrasting the anticipated EPS.

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Guidance

Looking ahead to 2024, Lazydays has signaled a cautious but optimistic outlook. The company anticipates a pre-tax loss in the first quarter but expects a return to profitability after that. The first six months will focus on improving volume and store performance, with the full year anticipated to yield positive net income and operational cash flow. These projections reflect the management’s confidence in the operational improvements and the strategic initiatives, including expansion through acquisitions and new store openings.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.