CarMax Inc.’s net earnings rose 12 percent to $172.2 million in the fiscal second quarter on higher used-vehicle sales, even as the average selling price of used vehicles declined.
Revenue from sales and other operations during the three months that ended Aug. 31 rose 7.9 percent to $3.88 billion, the company said Tuesday.
CarMax reported total used-vehicle unit sales rose 9.2 percent to 156,516 vehicles in the second quarter compared with the year-earlier quarter, while comparable-store used-vehicle sales rose 3.3 percent, down from a 4.2 percent year-over-year increase last year. The average used vehicle sold for $19,983 in the second quarter, down 1.1 percent from 2014, the company said.
CarMax CEO Tom Folliard cited “the continued expansion of our store base and growth across our used, wholesale and [CarMax Auto Finance] operations” for the results.
The Richmond, Va., used-vehicle powerhouse opened four stores in the second quarter: two in Denver and one each in Providence, R.I., and Tallahassee, Fla. The Tallahassee store is CarMax’s first in the market.
Revenue from CarMax Auto Finance, the company’s vehicle financing service, rose 6.2 percent to $98.3 million.