Lithia Motors Reports Business Improvements With Sequential Increases Throughout April and May

Lithia Motors, Inc. (NYSE: LAD) today reported notable improvements across all business lines from the declines experienced in March and April as states begin to relax shelter-in-place policies and enter into the various phases of reopening.

For the entire month of May, total same store vehicle unit sales decreased approximately 7%, with same store new vehicle unit sales decreasing approximately 20% and same store used vehicle unit sales increasing approximately 8% over the same period last year. Total vehicle unit sales saw weekly sequential improvements in May as shelter-in-place policies began to be lifted throughout the country. During the first week of May, same store new vehicle unit sales decreased approximately 28% and used vehicle unit sales decreased approximately 5%. Significant improvement was seen by the end of the last week of May, with same store new vehicle unit sales decreasing approximately 16% and same store used vehicle unit sales increasing approximately 22% over the same period last year. The increases in used vehicles unit sales during the last week of May returned to the strong levels achieved for the first two months of 2020 and prior to the pandemic. In addition, same store web traffic, representing unique visitors to our websites, increased nearly 40% for the last week of May compared to the same period last year.

“These steady improvements throughout May underscore the strength of Lithia’s highly diversified business model and offerings,” said Bryan DeBoer, President and CEO. “Coupled with our amazing team members, second largest owned online inventory in the country, and our digital home solutions, we were able to generate positive earnings and cash flow during these unprecedented times allowing us to accelerate our growth strategy during the second half of this year.”

Service, body, and parts also showed signs of recovery in May, with same store sales decreasing approximately 27% for the month. The recovery trend in May reflected two less production days in 2020 compared to the same period last year.

About Lithia
Lithia Motors, Inc. is one of the largest providers of personal transportation solutions in the United States and is among the fastest growing companies in the Fortune 500 (#252-2020). Lithia is a growth company powered by people and innovation. By purchasing and building strong businesses that have yet to realize their potential, Lithia generates significant cash flows with low leverage. Operational excellence is achieved by refocusing the business on the consumer experience and by utilizing proprietary performance measurements to increase market share and profitability. Lithia’s unique growth model invests to expand its nationwide network and to fund innovations that create personal transportation solutions wherever, whenever and however consumers desire.