GPI Reports Increase in Revenue Driven by Strong Performance in Parts and Service and F&I Segments
Segments of revenue
GPI's revenue in the latest quarter was driven by strong performance in the parts and service, as well as the F&I segments. Parts and service same store revenues outperformed the prior year, reflecting increased business activity and improvements in the customer contact center. F&I net same store revenues also outperformed the prior year, driven by an increase in retail units sold.
GPI's strong performance in the parts and service segment can be attributed to increased business activity and improvements in the customer contact center, which made scheduling appointments easier for customers. This resulted in higher revenues compared to the prior year. Additionally, the F&I segment benefited from an increase in retail units sold.
GPI faced challenges in the F&I segment due to lower used vehicle finance penetration and decreased income per contract for retail finance fees and service contracts. This was a result of customers seeking alternative financing providers in a higher interest rate environment and tighter lending requirements. Used vehicle VSC penetration also declined due to affordability challenges for consumers with higher interest rates.
GPI's total gross profit in the U.K. increased by $27.3 million, driven by higher same store results and store acquisitions. In the U.S., total gross profit increased by $27.8 million, primarily due to the acquisition of stores. However, total same store gross profit in the U.S. decreased by $55.5 million, primarily driven by downward pressures on new vehicle margins and lower F&I PRU.
GPI reported an increase in revenue in the latest quarter, driven by strong performance in the parts and service and F&I segments. The company's investments in improving the customer contact center and streamlining operations have resulted in increased business activity and higher revenues. However, challenges in the F&I segment, such as lower used vehicle finance penetration and decreased income per contract, have impacted the overall performance. GPI's total gross profit has shown mixed results, with an increase in the U.K. but a decrease in the U.S. due to various factors.