AutoNation Inc.'s revenue rose in the first quarter, driven by gains in each of its business segments, while net income fell, the retailer said Tuesday.
Revenue grew 2.3 percent from a year earlier to $5.26 billion. Finance and insurance and used-vehicle revenue -- including both wholesale and retail -- showed the most significant gains, climbing 8.7 percent and 7.2 percent, respectively, according to a company statement.
Net income fell 4.5 percent to $93.7 million as floorplan and other interest expenses increased. Gross profit on new-vehicle sales declined 10 percent to $129.7 million, while total gross profit rose 2.7 percent to $842.3 million on profit gains in all other operations.
Sales: New-vehicle sales fell 2.1 percent to 74,178 units. Domestic-brand unit sales dipped 6.3 percent, and import-brand sales fell 1.1 percent. Luxury-brand sales improved 2.6 percent.
Same-store sales: New-vehicle sales were flat at 73,275 units, vs. a 2 percent gain for industrywide first-quarter U.S. light-vehicle sales, according to the Automotive News Data Center. Used-vehicle retail sales rose 3.5 percent to 60,270.
Records: Same-store F&I gross profit per unit rose 8.1 percent to an all-time high of $1,779.
Brand extension: During the first quarter, AutoNation opened its fourth AutoNation Auto Auction in Atlanta and AutoNation USA used-only stores in Phoenix, Las Vegas and Katy, Texas. In April, the dealership group opened three AutoNation Collision Centers.
AutoNation will also acquire four Jaguar Land Rover open points in Florida, California, Texas and Maryland. The stores will likely open between 2020 and 2022. When they are fully operational, AutoNation expects the combined annual revenue to be about $400 million, the statement said.
AutoNation, of Fort Lauderdale, ranks No. 1 on Automotive News' list of the top 150 dealership groups based in the U.S., with retail sales of 329,116 new vehicles in 2017.