Lithia Motors: Initiation Of Coverage – A Story Of UK Market Growth Through The Pendragon Acquisition

This is our first report on automotive retailer, Lithia Motors. The company had a strong Q4 2023, with revenues growing by 11% from last year to reach $7.7 billion. The company’s revenue increase was primarily driven by robust new vehicle sales, with same-store units increasing by 10% and aftersales revenues growing by 3%. Despite this, the results were partially offset by a decline in new vehicle gross profit per unit (GPU), which normalized by about $150 per month. The company mentioned that the normalization was in line with their expectations.