2023-04-20 07:17:34 ET
AutoNation ( NYSE: AN ) swung lower in early trading on Thursday after Q1 revenue fell short of expectations.
The auto retailer's revenue fell 5% year-over-year to $6.4B as lower used vehicle and customer financial services revenue were only partially offset by higher new vehicle and after-sales revenue. New vehicle revenue was up 4% to $2.9B, while used vehicle revenue fell 21% to $2.0B.
New vehicle gross profit decreased $58M reflecting gross profit per vehicle retailed of $5,210 compared to $6,112 a year ago and slightly lower unit sales. Used vehicle gross profit increased $18M or 13% as higher gross profit per vehicle retailed of $2,117 compared to $1,566 a year ago more than offset lower unit sales.
SG&A as a percentage of gross profit was 60.8%, which was much lower than pre-pandemic levels but slightly higher than recent periods reflecting investments in technology and new business initiatives.
AutoNation ( AN ) said consumer demand for personal vehicle ownership remains strong. The company noted it is meeting demand through its sourcing capabilities, selection of vehicles, footprint, digital tools, core efficiencies, and business expansions.
Shares of AutoNation ( AN ) fell 2.44% to $133.00 after the revenue miss.
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AutoNation slips after used vehicle revenue falls sharply in Q1