First-quarter earnings accelerate for CarMax

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A nine percent increase in total vehicle and same-store sales fired up first-quarter earnings at CarMax. The Richmond-based used car retailer reported today that net earnings increased 252 percent to $101.1 million, or 44 cents per diluted share, compared to $28.7 million, or 13 cents a share, for the same period last year.

The results, for the first three months ending May 31, also saw net sales and operating revenue increase by 23 percent to $2.26 billion, up from $1.83 billion compared to the same quarter last year.

“Our nine percent increase in comparable store used unit sales reflected the benefit of a continuing gradual rebound in customer traffic …” CEO Tom Folliard said in a statement. 

The company, which operates more than 100 stores, said that gross profit per used vehicle increased to $2,212, up from $2,001 in the prior year quarter. After the market closes Friday, CarMax (KMX) will join the Standard & Poor’s 500 stock index, replacing XTO Energy.

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