Automotive retailer AutoNation Inc.’s (AN - Free Report) retail new vehicle sales increased 17% year-over-year to 25,403 units in July, driven by strong sales in all segments.
On a same-store basis, retail new vehicle sales rose 12% to 24,195 units. July had 25 selling days this year versus 24 selling days last year. AutoNation also achieved the feat of selling 9 million vehicles.
Sales in the Domestic segment increased 23% to 7,950 vehicles. The segment comprises retail automotive franchises that sell vehicles manufactured by Ford Motor Co. (F - Free Report) , Chrysler and others.
Sales in the Import segment went up 14% to 13,066 vehicles. The segment covers retail automotive franchises that sell vehicles manufactured by Toyota Motor Corp. (TM - Free Report) and others.
Sales in the Premium Luxury segment rose 19% to 4,387 vehicles during the month. The segment consists of retail automotive franchises selling vehicles manufactured by Mercedes Benz, BMW, Lexus and others.
Auto sales in the U.S. grew 14% to 1.32 million units in July on the back of better performances by automakers including Toyota, Ford and General Motors Company (GM - Free Report) . The year-over-year improvement was attributable to the rising demand for large pickup trucks with improvement in housing, construction and energy sectors.
In addition, the launch of new models ranging from subcompact cars to big pickup trucks, lower interest on auto loans and an improving economy are boosting consumer confidence and favorably impacting the results.
Based in Fort Lauderdale, Fla., AutoNation is the largest automotive retailer in the U.S. The company owns and operates about 267 new vehicle franchises that sell 33 brands located in the major metropolitan markets across 15 states.
AutoNation reported all-time record earnings from operations in the second quarter of 2013. The company posted a 10.6% rise in earnings per share to 73 cents in the second quarter from 66 cents in the same quarter of 2012. However, earnings per share missed the Zacks Consensus Estimate by a penny.
Revenues increased 13.4% to $4.43 billion, beating the Zacks Consensus Estimate of $4.35 billion. The revenue growth was attributable to strong performance in all business sectors along with higher revenues from used vehicles and its Finance and Insurance businesses. The company’s Domestic segment was the biggest gainer in the quarter.
AutoNation currently retains a Zacks Rank #3 (Hold).