“We are expanding our substantial product offerings and increasing our exposure to more recurring revenue streams,” Manley said in a statement.

AutoNation’s new-vehicle sales climbed 7.9 percent during the quarter, as inventory continued to increase, up to 26 days’ supply at the end of June. A year earlier, it was just 11 days’. Used-vehicle sales declined by 11 percent.

Its gross profit per new vehicle dropped 25 percent to $4,607, while gross profit per used vehicle sold dipped 2.3 percent to $1,870.

The company acquired five dealerships in California in June and opened its 16th AutoNation USA used vehicle-only store, in Colorado Springs, Colo., continuing its expansion of the brand.

Shares of AutoNation were down nearly 10 percent in trading around 10 a.m. Friday.

CFO Joe Lower said in February that the retailer had 20 additional AutoNation USA stores under development, with at least half that number slated to open in the next 12 months. Four opened during 2022, with plans to grow the division to more than 130 by the end of 2026. Two other outlets opened in the first quarter.

Q2 revenue: $6.9 billion, flat from a year earlier

Q2 net income: $272.5 million, down 28 percent from a year earlier

Q2 vehicle sales: 131,256 combined new and used vehicles sold, down 2.8 percent. On a same-store basis, there were 128,481 combined new and used vehicles sold, down 4.4 percent.

Records: Second-quarter service and parts gross profit of $543 million and finance and insurance revenue per vehicle of $2,815

Ranking: AutoNation ranks No. 2 on Automotive News‘ most recent list of the top 150 dealership groups based in the U.S., with retail sales of 229,971 new vehicles in 2022.