For the first quarter of 2019, AutoNation’s customer care (parts and service) revenue increased 2.1% to $876.70 million, and its customer care gross profit grew 3.5% to $398.90 million. As a percentage of revenue, gross profit rose from 44.9% to 45.5% on a year-over-year basis.

Same-store customer care revenue increased 2.4% to $859.10 million. Same-store customer care gross profit rose 3.9% to $391.10 million, primarily because of increases in gross profit associated with customer-pay service (up $7.70 million) and warranty (up $5.40 million).

According to management, customer-pay gross profit benefited from an increase in higher-value customer-pay repair orders, the company’s parts initiatives and price increases. Warranty gross profit benefited from improved margin performance, largely attributable to a shift in mix toward higher-margin service work and improved parts and labor rates negotiated with certain manufacturers.

Ft. Lauderdale, FL-based AutoNation, America’s largest automotive retailer, owned and operated over 325 locations as of March 31, 2019.