CarMax boosts sales, profit
- September 22, 2010
Used car retailer CarMax saw a boost in revenue and profit in the second quarter as consumers looked for used cars in the weak economy.
Revenues increased 13 percent to $2.34 billion, compared with $2.08 billion in the second quarter of last year. Unit sales at stores open at least a year rose 4 percent in the quarter.
Profit increased 5 percent to $107.9 million, compared with $103 million the year before.
CarMax CEO and President Tom Folliard said stores saw similar traffic levels compared with the second quarter of 2009, but more of the consumers this year bought cars. Folliard also said used car prices remained strong, helping it buy more cars directly from consumers. As a result, gross profit per car in the second quarter rose 4 percent.
“We are extremely pleased to deliver record profits, with strong contributions from across our business model, despite what remains a challenging sales environment,” Folliard said in a statement.