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
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