CarMax revenue rises but quarterly profit is flat
- September 20, 2012
Richmond-based CarMax Inc. reported its second-quarter earnings were flat compared to the same quarter the year before despite a 7 percent increase in revenue.
“We are pleased with our improved retail sales in the second quarter, as used unit [comparable-store sales] strengthened, and we continued to open new stores,” Tom Folliard, president and chief executive officer, said in statement.
For the second quarter ended of fiscal year 2013 ending Aug. 31, net sales and operating revenues rose 7 percent to $2.76 billion from $2.59 billion in the second quarter of last year. Total used-car sales in comparable stores increased 5 percent for the quarter.
Net earnings were $111.6 million, or 48 cents per diluted share, virtually unchanged in comparison to $111.2 million, 48 cents per diluted share, in the second quarter of fiscal 2012.
Folliard said higher revenue in the recently completed quarter was offset by an 11 percent increase in sales, general and administrative costs, which was caused in part by a ramp-up in store growth.
The company plans to open 10 superstores in fiscal 2013, double the number opened in fiscal 2012. During the second quarter of fiscal 2013, CarMax opened three used-car superstores, entering the Ft. Myers, Fla., market with two stores and opening a third store in the Nashville market.