Used car dealership chain CarMax 3Q profit rises

Published on NewsOK Modified: December 20, 2012 at 9:27 am •  Published: December 20, 2012
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Its total gross profit — its profit after reconditioning and other costs — grew 14 percent during the quarter. Gross profit per used vehicle sold was essentially flat at $2,146 and wholesale gross profit per vehicle was relatively stable at $923.

Income from CarMax's auto financing arm rose 16 percent to $72.5 million in the quarter compared with $62.6 million a year ago.

Expenses rose about 14 percent to $257.3 million as the company spent more to support its store growth. The company said it has opened eight of the 10 stores it plans to open in both new and existing markets during the fiscal year ending Feb. 28, 2013. It opened three stores during the quarter.

CarMax Inc. has been focused on lowering expenses, and improving traffic, execution and gross margins to position it for future growth. For example, the company has improved its sale and appraisal rates and lowered the costs for reconditioning vehicles.

The company also said Thursday that it repurchased 1.7 million shares of common stock for $60.2 million during the quarter.

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Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum.



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