CarMax sales soar in first quarter
The Take: CarMax Inc. reported a 19 percent increase in first quarter sales to $3.31 billion. Used unit sales in comparable stores rose 17 percent during the quarter, while the used unit sales rose 22 percent and wholesale unit sales rose 6 percent. The company attributes its sales growth to increased sales conversion in its stores and improved consumers’ increased access to credit. During the quarter, CarMax opened stores in Harrisonburg and Savannah, Ga. and Columbus, Ga.
Revenue: Total sales for the first quarter grew 19.3 percent to $3.3 billion, from $2.8 billion the same quarter last year.
Profit: Earnings during the quarter grew 21.5 percent to $146.7 million, compared with $120.7 million during the first quarter of the previous year.
Earnings per share: The company earned 64 cents per diluted share, up from 52 cents per diluted share.
The company’s take: “We are very pleased to report our strongest increase in comparable store used unit sales in several years,” Tom Folliard, president and chief executive officer of CarMax, said in a statement. “Strong retail sales growth, together with continued contributions from [CarMax Auto Finance] and wholesale drove all-time record quarterly revenues and earnings.”