CarMax Auto Superstores Inc. will open a used-car superstore in Sacramento, Calif., and one other market during the company's next fiscal year that begins March 1.
Beyond that, expansion plans call for opening single stores in markets with populations of 1 million to 2 million and satellite stores in major markets where it already has stores - including Chicago, Washington/Baltimore, Miami, Dallas and Houston, President Austin Ligon said.
Ligon declined to disclose the second market CarMax will enter because the real estate deal is pending. But he did say the company plans to open four to six stores during its 2003 fiscal year.
Ligon said he has confidence in CarMax's business model and expects to end its 2001 fiscal year with a profit of between $40 million and $43 million.
CarMax, which opened its first store in 1993, made its first profit - $1.1 million on revenues of $2.01 billion - in fiscal 2000.
He said he expects CarMax to pay for its future expansion without assistance from its parent company, Circuit City.
While CarMax's stock price is low, it has more than doubled from about $2 a year ago to around $4.75, Ligon said.
'We're just at the beginning of educating Wall Street about how different CarMax is from the typical retailer,' Ligon said.
'Our volume per store is higher and our profitability is better.'
CarMax of Richmond, Va., operates new-car franchises and used-car superstores at 40 locations.