Used-car giant CarMax posted a 58 percent jump in net income in its fiscal fourth quarter, ended Feb. 28, 2019, even as store traffic declined, February tax refunds were delayed and the cost of acquiring inventory rose, the retailer said.
Revenue and retail units sold also rose. Gross profit increased 12 percent to $599.4 million and revenue rose 5.7 percent to $4.32 billion.
Despite reduced floor traffic, CarMax reported a 5.6 percent increase in the total number of used vehicles sold, to 180,207 units. Same-store used-vehicle sales were up 2.8 percent in the fourth quarter, the company said Friday.
Two issues dragged on the quarter's net earnings. Tax law changes reduced net earnings by $11.9 million, CarMax said, the result of a $32.7 million tax reduction offset by a $20.8 million tax benefit. A one-time $8 million discretionary bonus that was "paid to eligible associates," also reduced net earnings.
"We're pleased to report double-digit growth in pretax earnings this quarter, even excluding the prior period's discretionary bonus," CarMax CEO Bill Nash said in a statement Friday.