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
World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →