One of Friday’s most advanced stocks on the New York Stock Exchange was Camping World Holdings (NYSE:$CWH). I suppose that’s what happens when your second quarter earnings surpass the market’s expectations on both the top and bottom lines.

For the second quarter, revenue was $1.3 billion, which generated a diluted EPS of $0.91, which completely exceeded analysts’ expectations of $1.17 billion revenue and earnings of $0.68.

As of 3 p.m. EDT on Friday – the day after the second-quarter earnings report was posted – CWH stock increased by more than 11%, which suggests that investors were extremely happy with the company’s results.

So What Happened?

To be frank, it is hard to find anything negative to say about Camping World’s second-quarter earnings report. Why? Well, sales increased 20% year over year, while net income grew by 40%. Additionally, same-store sales were up by 10.6%, and operating margins widened by 98 basis points.

Even though the average new-vehicle sales price declined by 4.5%, new-vehicle sales increased by a whopping 38.2%, all thanks to high demand and a shortage of used vehicles. While it’s true the price drop might look like a negative data point at first, this sort of drop was actually a health one, caused by an increase in sales of non-motorized towable units. This is a possible reflection of a rush of younger customers.

Now What’s Going to Happen?

It seems the millennial generation has taken a liking to the RV culture. After all, there is a tremendous amount of value in a living space that can be moved throughout the country.

Since going public less than a year ago, Camping World is up by 60%. However, there is still room to grow. After all, much of the Millennial generation is just now entering into their prime earnings years, and by 2020, that generation could be worth a staggering $24 trillion.

That’s a lot of spending power, therefore we may start to see more and more RVs out on the road over the next couple of years.

Featured Image: twitter