Sonic Q1 Numbers Mixed
Major retailer sees big used-vehicle sales boost, but overall revenue, profit down.
President Jeff Dyke pleased by robust used-vehicle sales growth.
IMAGE: Sonic Automotive
Auto retail giant Sonic Automotive reported mixed first-quarter results.
The North Carolina-based company said revenue rose 1% in the quarter to $3.5 billion year-over-year, but gross profit fell 3%.
Meanwhile, its used-vehicle segment, EchoPark, posted record first-quarter revenue of $650.5 million, up 5% year-over-year, and record first-quarter sales of nearly 20,000 units, up 34%. The segment’s gross profit, though, fell 9% to $39.4 million.
“We are also encouraged by the momentum we are seeing at EchoPark, with 34% growth in sales volume year-over-year, demonstrating that our below-market pricing and exceptional guest experience continue to resonate with shoppers in the face of ongoing affordability challenges,” said Sonic President Jeff Dyke in a press release about the results.
Sonic’s gross profit per new retail and used vehicle at franchised dealers slipped, down 19% and 6%, respectively.
Originally posted on Auto Dealer Today
More Industry
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →