DULUTH, Ga. -

Contrary to what’s been plaguing many dealers, Asbury Automotive Group enjoyed a rise in used-vehicle gross margin during the second quarter despite a retail environment that president and chief executive officer Craig Monaghan described as “choppy."

Group management reported during a conference call to discuss Q2 results on Tuesday that its used-vehicle gross margin moved from 7.7 percent a year ago to 8.3 percent in the quarter that wrapped up on June 30.

Asbury, which operates 82 dealerships and three stand-alone used-vehicle stores, reported net income for the second quarter of $36.7 million, compared to $41.1 million in the same quarter last year.

Total revenue for the second quarter was $1.6 billion, down 4 percent year over year (attributable mostly to strategic divestitures during the second half of 2015, according to senior vice president and chief financial officer Keith Style).

Total revenue on a same-store basis was down 1 percent year over year.

Asbury logged 19,612 used vehicle sales in the second quarter, down from more than 21,000 in the same quarter last year, and has generated more than $831 million in used retail revenues year to date.

Retail revenue on the used side was $418.3 million, down 7 percent year over year, while used gross profit fell by 1 percent.

Used-vehicle unit sales were down 5 percent, attributable mostly challenges associated with stop sales. That being said, with better used-vehicle management, gross profit per unit increased to $1,769, “our highest level in over a year,” said David Hult, executive vice president and chief operating officer.

And with improved wholesale performance, total gross profit was up 3 percent.

Average price per used unit was $21,329, up slightly from the same period a year ago, while average gross profit per used unit was up slightly as well.

On a same-store basis, Asbury saw used-retail revenue of $411.8 million for the quarter, down from $429.3 million in the same period last year. Used retail gross profit came in at 34.1, up 0.5 percent year over year. Also on a same-store basis, used retail gross margin was 8.3 percent, up from 7.8 percent in the same period a year ago.

Asbury opened its third Q Auto store, in Tampa, Fla., during Q2, with a fourth slated to open in the same market next month.

Reiterating a “choppy” sales theme thus far in 2016, Monaghan nonetheless said Asbury’s teams have responded well to the challenge.

But how, if at all, has this altered expectations since January?

“I think we sit here today in a market where we have a good week and bad week, a good month and a soft month,” Monaghan said. “Broadly speaking, I don’t think things feel a lot different. There’s certainly plenty of uncertainty. … We need to make sure out stores are right-sized and staffed appropriately. … We continue to look for ways where we can drive incremental productivity, and capital allocation is key.

“I think one thing that we might think about that’s maybe just a little different today than it was in January is that we think this type of environment creates a lot of opportunity. We think it makes sense for us to stay flexible.”

Editor’s note: Stay tuned for a look at how stop-sales are impacting Asbury Automotive Group’s used business.