Melissa Burden’s article provides an overview of Lithia Motors Inc.’s performance in the fourth quarter and full year of 2022. The dealership group reported a decrease in net income for the fourth quarter, but their revenue and vehicle sales increased for both the quarter and full year. The company also acquired nine stores in the fourth quarter and thirty-one stores throughout the year, representing a total of $3.5 billion in annual revenue. The acquisitions were offset by thirteen sales representing $663 million in revenue. Lithia Motors Inc. is ranked No. 2 on Automotive News’ most recent list of the top 150 dealership groups based in the U.S., with retail sales of 260,738 new vehicles in 2021.
Lithia Motors Inc. is a public retailer that has seen significant success in their fourth quarter and full year of 2022. Revenue and vehicle sales increased for both the quarter and full year, though same-store vehicle sales were down. The company’s net income dropped 15 percent to $249.9 million as revenue rose 11 percent to $6.99 billion in the fourth quarter. However, net income for the full year jumped 19 percent to $1.26 billion while full-year revenue rose 24 percent to a record $28.23 billion. Average gross profit per new vehicle fell 13 percent to $5,344 in the quarter, but grew 24 percent to $5,816 for the full year. Average gross profit per used vehicle plunged 34 percent to $2,137 in the fourth quarter compared with the fourth quarter of 2021, but declined 12 percent to $2,648 for the full year.
Lithia Motors Inc. CEO Bryan DeBoer attributes the company’s success to their well-capitalized balance sheet and the growth initiatives they have executed across their segments. The company has acquired dealerships representing $13.9 billion in annual revenue since July 2020, when they disclosed a five-year plan to reach $50 billion in annual revenue by 2025. Lithia Motors Inc. is well-positioned for further consolidation in their sector and is expected to continue their success in the coming years.
The automotive industry is a competitive and ever-changing field, and Lithia Motors Inc. has proven their ability to stay ahead of the curve. Their financial success in the fourth quarter and full year of 2022 is a testament to their commitment to growth and innovation. They are continuing to add stores through acquisitions and are well-positioned for further consolidation in their sector. With their well-capitalized balance sheet, Lithia Motors Inc. is expected to continue their success in the coming years.
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