AutoNation Inc. saw its parts and service revenue increase 8.6% to $1.09 billion in the first quarter of 2023, with same-store parts and service revenue up 7.6% to $1.07 billion.
Parts and service gross profit rose 10.8% to a record $511.10 million in the quarter, with customer-pay, warranty and collision all up in the mid-teens year over year, according to management. Parts and service gross margin increased from 45.9% a year ago to 46.9% for the three months ended March 31, 2023.
On a same-store basis, gross profit grew 9.9% to $503.10 million, primarily due to increases in gross profit associated with customer-pay service (attributable to higher-value repair orders) and warranty work (benefitting from higher-value repair orders as well as improved parts and labor rates negotiated with certain manufacturers).
Same-store parts and service gross margin increased from 45.9% to 46.9%.
Florida-based AutoNation is one of the largest automotive retailers in the United States. As of March 31, 2023, it owned and operated 344 new vehicle franchises from 248 stores predominantly located in major metropolitan markets in the U.S. Sunbelt region.
The company also owned and operated 53 AutoNation-branded collision centers, 15 AutoNation USA used-vehicle stores, four AutoNation-branded automotive auction operations, three parts distribution centers, an auto finance company, and a mobile automotive repair and maintenance business (RepairSmith).
