In a statement, AutoNation’s CEO, Manley, expressed their commitment to expanding their extensive product offerings and increasing their exposure to recurring revenue streams.
During the quarter, AutoNation experienced a 7.9 percent increase in new-vehicle sales. This growth was accompanied by a rise in inventory levels, reaching 26 days’ supply by the end of June compared to just 11 days’ supply the previous year. However, the company saw an 11 percent decline in used-vehicle sales.
While the gross profit per new vehicle dropped by 25 percent to $4,607, the gross profit per used vehicle sold saw a minimal decrease of 2.3 percent, amounting to $1,870.
In June, AutoNation acquired five dealerships in California and opened its 16th AutoNation USA store, which exclusively focuses on used vehicles, in Colorado Springs, Colo. These strategic moves signify the ongoing expansion of the AutoNation brand.
During trading on Friday, AutoNation’s shares experienced a nearly 10 percent decrease around 10 a.m.
Back in February, CFO Joe Lower revealed that the company had 20 additional AutoNation USA stores in development, with at least half of them expected to open within the next 12 months. Four of these stores opened in 2022, and the company aims to grow the division to over 130 stores by the end of 2026. Furthermore, two other outlets were opened during the first quarter.
Q2 revenue: $6.9 billion, remaining flat compared to the previous year
Q2 net income: $272.5 million, a decrease of 28 percent from the previous year
Q2 vehicle sales: 131,256 new and used vehicles combined were sold, experiencing a 2.8 percent decline. On a same-store basis, 128,481 new and used vehicles were sold, representing a 4.4 percent decrease.
Key achievements: AutoNation achieved a second-quarter service and parts gross profit of $543 million, along with an impressive finance and insurance revenue per vehicle of $2,815.
Ranking: Based on the latest rankings by Automotive News, AutoNation holds the second position on the list of the top 150 dealership groups in the U.S., with retail sales of 229,971 new vehicles in 2022.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
