CarMax profit rises despite drop in comparable-store sales
- September 22, 2011
Henrico County-based CarMax Inc. reported Thursday that its profit rose 3.7 percent in the past three months to $111.9 million, or 49 cents per diluted share.
The national used-car retailer had earnings of $107.9 million, or 48 cents per diluted share, in the second quarter of fiscal year 2011.
In the company’s most recent quarter, which ended Aug. 31, net sales and operating revenues increased 11 percent to $2.59 billion from $2.34 billion in the second quarter of last year.
Comparable-store sales declined 2 percent during the second quarter and total retail sales decreased 1 percent. However, revenue from wholesale vehicles rose 23 percent.
“We are pleased with our ability to increase earnings despite the 2 percent decline in comparable store used unit sales,” Tom Folliard, president and CEO, said in a statement. “Our diversified business model enabled us to deliver the second-highest quarterly earnings in our history, as the strength of our wholesale and finance operations offset the effect of softer used unit comps.”
CarMax officials said the 2 percent decline in comparable-store retail sales reflects the recent economic slowdown and a slump in consumer confidence levels.