CarMax Inc., the nation's largest used-vehicle dealership group, said today that it posted solid revenue and profit growth in its most recent quarter amid continued strong demand for used cars.
Net income grew to $107.9 million for the quarter that ended Aug. 31, up 5 percent from the same quarter last year. Revenue jumped 13 percent to $2.34 billion.
Tom Folliard, CEO of the Richmond, Va.-based company, said he was pleased customer traffic remained strong even compared to the year-earlier period, when the government's cash-for-clunkers program drove consumers into dealerships. Sales at stores open at least 13 months were up 4 percent from second quarter of 2009.
CarMax shares jumped 8.4 percent today to close at $26.15, near its 52-week high of $26.50.
Although the cash-for-clunkers program didn't apply to used vehicles, CarMax said it increased traffic at its stores.
“We are especially pleased with the strength of our comparable-store used-unit sales -- where, despite our toughest comparison in recent quarters, we still delivered positive comps,” Folliard said in a statement.
The average selling price for used vehicles was $18,084 for the quarter, up 5 percent from $17,185 during the same quarter last year.
Its finance arm, CarMax Auto Finance, reported income of $52.6 million, compared with a $72.1 million profit in the same period last year. The year-ago period's income was boosted by $36.2 million in one-time items.
CarMax operates 103 used-car superstores and five new-car dealerships in 49 markets.