AutoNation Inc.’s internet revenue tumbled sharply within the first quarter as income slipped and the nation’s second-largest dealership group offered fewer new and used autos.
AutoNation reported Thursday that first-quarter internet revenue dropped 20 p.c in contrast with the year-earlier quarter, to $288.7 million. Revenue dipped 5 p.c to $6.4 billion.
The retailer’s new-vehicle retail gross sales declined 2.4 p.c for the interval, whereas used-vehicle retail gross sales dropped by 15 p.c.
AutoNation CEO Mike Manley mentioned in a press release that the retailer managed its used-vehicle enterprise “with a deliberate focus on driving gross profit.” The firm’s gross revenue per used automobile retailed rose 35 p.c to $2,117. Gross revenue per new automobile retailed dropped 15 p.c to $5,210, down from the year-earlier lofty ranges pushed by the business’s new-vehicle scarcity.
Manley additionally touted an 11 p.c leap in gross revenue for AutoNation’s parts-and-service enterprise.
“Our first quarter results demonstrate the resiliency of our operations and the benefits of a diversified business model,” Manley mentioned within the assertion.
AutoNation repurchased 2.4 million shares of inventory in the course of the first quarter, persevering with a apply it has recurrently pursued.
AutoNation’s shares have been buying and selling at $131.82, down 3.3 p.c, on Thursday morning simply after the inventory market’s opening.
Q1 income: $6.4 billion
Q1 internet revenue: $288.7 million
Vehicle gross sales: 55,065 new autos retailed, down 2.4 p.c; 67,539 used autos retailed, down 15 p.c.
Ranking: AutoNation, of Fort Lauderdale, Fla., ranked No. 2 on Automotive News‘ most up-to-date checklist of the highest 150 dealership teams based mostly within the U.S., with retail gross sales of 229,971 new autos in 2022.
Source: www.autonews.com