Lithia says Q2 net income slipped 11% while new stores lifted revenue 12%

“Our second quarter performance was strong across all our business lines and our teams demonstrated strong operating discipline as we continue to build out our adjacencies with consumer optionality and provide products and services fitting all affordability levels,” Lithia CEO Bryan DeBoer said in a statement Wednesday.

“Our commitment to improving our operating results through a relentless focus on high performance is demonstrated in our results, allowing us to continue acquiring stores domestically and abroad.”

Shares of Lithia gained nearly 10 percent in early trading Wednesday on Wall Street.

Q2 revenue: $8.1 billion, up 12 percent from a year earlier

Q2 net income: $301.1 million, down 11 percent from a year earlier

Q2 adjusted income: $305.1 million, down 14 percent from a year earlier

Vehicle sales: Lithia sold 164,112 vehicles, new and used, in the first quarter, up 9.6 percent. On a same-store basis, Lithia sold 139,553 new and used vehicles in the second quarter, up 17 percent.

Guidance: Lithia said it now expects Driveway Finance Corp., its captive finance company, to lose $50-$55 million in 2023, up from an estimated $40 million 2023 loss it predicted in the first quarter. Lithia said Driveway Finance would generate 2024 income between break-even and $10 million, rather than the $1 million it previously forecast and earn between $80-$90 million in 2025, instead of $82 million it had anticipated earlier.

Ranking: No. 1 on Automotive News‘ list of the top 150 dealership groups based in the U.S, retailing 271,596 new vehicles in 2022. Lithia’s sales figures include dealerships outside of the U.S.