Lazydays Holdings, Inc. (NASDAQ:LAZY) Q2 2023 Earnings Call Transcript

I would say, net-net of the $40 million run rate we gave for Knoxville, I wouldn’t assume that 100% of that will be incremental. I think there’ll be some erosion, but it’s hard for me to quantify exactly how much that is. It’s somewhat of a guess. And frankly, I’m – we’re just not that smart. So I think we’ve tried to hedge accordingly. I wouldn’t anticipate the full $40 million will come in there. In terms of the benefit from the state, it’s fairly immaterial. They give us some assistance in terms of relocation, but we’ll also incur cost to move everything around and shut things down. And so I don’t anticipate a significant windfall there. More importantly, we’re keeping our store count intact, and we’re allowing the employees that are at the Marysville location to have alternatives in terms of where they go.

That will be helpful just in terms of maintaining their employment, which is important to us culturally.

Ryan Sigdahl: Good. One more for me just on the exclusive Airstream store in Monticello. Curious, just customer perception, I know it’s very early since that opened. But just if there’s different customers, perceptions, if there’s different OEM allocations, OEM support discounts, et cetera, given it’s an exclusive store? And then if there’s any opportunity to do that at other locations?

John North: In short, I think, yes. Airstream is a little bit of a different animal, in my view, relative to other potential RV brands. I would say that the demographics and the consumers are typically very Airstream-focused. They’re not necessarily down looking at a different brand and then convert over to Airstream or vice versa. So I think it’s a little bit of a different customer base than you might encounter in a more traditional RV dealership. And so as we analyze the market, we have a dealership about, I guess, 20, 30 minutes away in Ramsey as well. Both of those are northwest of downtown Minneapolis on the way up to the lakes, which you probably know better than me, Ryan, given your proximity. But we had two dealerships there, both of size and scale.

We have the Airstream’s product being sold out of Ramsey. And so we made the strategic decision to go to Airstream and offer them an exclusive location. And Airstream has a handful of these superstores, I’ll call them. There’s one in Tampa. There’s a few in the Pacific Northwest. And they do significant volume in the 300 to 400 range. And so we were able to partner with Airstream. I think we’re able to increase our allocation a little bit there, and more importantly, create a really immersive experience for that customer. And so we’re pretty excited about it. There’s actually a Airstream camp ground about 20 minutes from the store with 150 spots dedicated only to Airstream consumers. And so we think it’s going to be a really powerful partnership, and we’re really excited to grow with Airstream.

And frankly, I think they’re excited to have another stand-alone dealership to represent Minneapolis and in the broader state of Minnesota. And so our relationship with them is certainly strong and we appreciate the support and we’re excited about that, especially given that it should be, hopefully, a top 5 store in terms of sales volume in the country, which is not insignificant. So we feel really positive about that change.

Ryan Sigdahl: Very good. And yes, it’s in an excellent location off Interstate 94 catching all that north traffic going to lake. So that’s it for me. Thanks John. Thanks Kelly. Best of luck, guys.

John North: Thanks, Ryan.

Operator: Thank you. Next question is coming from Daniel Moore from CJS Securities. Your line is now live.