For the first quarter of 2023, Group 1 Automotive reported all-time record quarterly parts and service revenue of $548.30 million (up 16.0%) along with record parts and service gross profit of $297.30 million (up 14.4%).
U.S. parts and service revenue increased 16.0% to $473.80 million, with same-store parts and service revenue up 13.1% to $453.20 million. According to management, U.S. parts and service same-store revenue outperformed the prior-year quarter primarily because of increases across all business lines reflecting increased business activity, increased same-store technician headcount (up 10% on a same-store basis) and greater capacity to meet increased demand.
A closer look shows that the U.S. customer-pay business generated a 15.9% increase in same-store revenue growth, while collision was up 17.5%, warranty was up 9% and wholesale parts were up 7.7%. According to management, about one-third of the year-over-year gains came from customer count increases and about two-thirds of the gain came from pricing or dollars per customer.
U.S. Parts and service gross profit grew 14.9% to $253.80 million, with same-store parts and service gross profit up 11.7% to $241.60 million.
However, U.S. parts and service gross margin decreased from 54.1% to 53.6% year over year, with same-store gross margin decreasing from 54.0% to 53.3%, largely tied to increased labor costs.
Houston-based Group 1 Automotive operates 149 dealerships across 17 states in addition to 55 dealerships in the United Kingdom.
