Company: LGIH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001580670-25-000043
Chunk: 39

Company: LGI Homes, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 ended March 31, 2025 and 23.4% for the three months ended March 31, 2024. The decrease in gross margin as a percentage of home sales revenues during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 was primarily due to a lower average sales price per home closed, a higher number of wholesale closings, higher lot costs and higher capitalized interest as a percentage of revenue as well as the impact of sales incentives offered during the three months ended March 31, 2025.

Selling Expenses. Selling expenses for the three months ended March 31, 2025 were $42.3 million, an increase of $1.2 million, or 3.0%, from $41.1 million for the three months ended March 31, 2024. The increase in selling expenses was primarily due to an increase in advertising expense and an increase in personnel costs as a result of an increase in communities, partially offset by a decrease in sales commissions for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.  Sales commissions decreased to $14.0 million during the three months ended March 31, 2025 from $17.4 million for the three months ended March 31, 2024, primarily due to a decrease in outside commissions and our in-house commissions. Selling expenses as a percentage of home sales revenues were 12.0% and 10.5% for the three months ended March 31, 2025 and 2024, respectively. The increase in selling expenses as a percentage of home sales revenues was primarily due to higher advertising and other personnel expenses offset by commissions during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

General and Administrative. General and administrative expenses for the three months ended March 31, 2025 were $31.2 million, a decrease of $0.3 million, or 1.1%, from $31.5 million for the three months ended March 31, 2024. General and administrative expenses as a percentage of home sales revenues were 8.9% and 8.1% for the three months ended March 31, 2025 and 2024, respectively. The increase in general and administrative expenses as a percentage of home sales revenues was primarily due to lower