CarMax profit up slightly
- December 21, 2011
Used car retailer CarMax Inc. reported a slight increase in profit during the third quarter as it sold fewer cars at higher prices.
The Goochland County-based retailer said sales at stores that had been open for a year or more dipped 3 percent because of low consumer confidence and the weak economy.
CarMax reported a net income of $82.8 million during the third quarter, compared with $82.4 million during the same period last year. Revenues rose 6.7 percent to $2.26 billion during the quarter that ended Nov. 30, from $2.12 billion during the third quarter of 2010.
During the quarter, the total number of used cars sold fell 1 percent from last year, but average selling prices increased to $19,221, compared with $18,177 last year. Wholesale unit sales rose 13 percent to 72,805 units during the third quarter.
The company plans to open 10 stores in fiscal year 2013 and between 10 and 15 each year during the next three years.