AutoNation April unit sales indicate a slowdown in growth despite increasingly favorable compares. That said, premium luxury auto unit growth is on a tear.
AutoNation reported a 3 point deceleration in total unit sales growth slowing to +12% in April despite more favorable compares. That said, the 'premium luxury' segment, which accounts for ~19% of AN units, put up 10% growth and although 200 bps below the total unit growth, underlying trends have accelerated from +7% in January to +15% in April (Chart1). Conversely, everything that's not premium luxury, representing ~80% of units sold and in line with overall trends, slowed 4 points sequentially +12%. As expected for the non luxury segment, 2 years trends have declined from 12 month highs of +27% in February to +10% last month.