CarMax profit slips on weaker new-vehicle sales
RICHMOND, Va. (Reuters) -- CarMax Inc., the largest retailer
of used cars in the United States, said fiscal first-quarter profits fell, reflecting a drop in new-vehicle sales.
Net income during the three months ending May 31 fell to $120.7 million, or 52 cents per share, from $125.5 million, or 54 cents per share, a year earlier.
Revenue rose 3 percent to $2.77 billion.
Gross margin declined to 13.8 percent from 14.3 percent a
New vehicles sold in the quarter fell 13 percent to 2,107
units. The company operates new-vehicle franchises with Nissan, Toyota, Chrysler and General Motors.
Total used unit sales rose 3 percent in the first quarter.
The retailer said it currently operate 112 used car superstores in 56 markets.
Total customer traffic and conversion at comparable stores were both similar to the prior year's quarter, CarMax said.
"Although comparable store used unit sales were flat, solid execution resulted in strong used and wholesale gross profit per unit and higher CarMax Auto Finance income," CEO Tom Folliard said in a statement.
Analysts on average had expected earnings of 53 cents per
share on revenue of $2.82 billion, according to Thomson Reuters
CarMax said today it plans to open ten superstores in fiscal 2013, twice the number of stores that were added in fiscal 2012.Contact Automotive News