CarMax profits grow; more used-car stores on the horizon

CarMax Inc., the nation's largest used-car retailer, today said its net profits rose 26 percent to $140.3 million in its fiscal quarter that ended Aug. 31, vs. the year-earlier period.The company's revenue grew 18 percent to $3.25 billion.CarMax also revealed the locations of five more used-car dealerships it plans. Those locations, added to pending locations announced earlier, bring to 17 the number of dealerships CarMax plans to open by Aug. 31, 2014.CEO Tom Folliard said the company has not changed its plans to open 30 to 45 used-car dealerships over the 36 months that started March 1. The opening of 17 stores over the next 12 months is just a refinement of the timing, he said."We haven't changed our projections at all," Folliard told analysts during the company's quarterly conference call.CarMax sold 134,854 used cars and trucks in the three months that ended Aug. 31, 21 percent more than in the year-earlier period. Sales at stores open for at least one year increased 16 percent.Folliard also said CarMax's sales mix has been consistent over the past few years, with vehicles 5 years and older accounting for about 25 percent, trucks and SUVs accounting for 25 percent and sales of compact and mid-sized cars growing "a few percentage points to nearly 40 percent.""Our mix of vehicles will vary based on customer demand," he added.CarMax said it will add its first stores in the following markets: Madison, Wis.; Reno, Nev.; Lynchburg, Va.; Milwaukie, Ore.; Rochester, N.Y.; Dothan, Ala.; and Spokane, Wash. The first four of those were announced today.The company also will add one store each in Mechanicsburg, Pa., and Fort Worth, Texas, where it already has a presence. It had not previously announced plans for the additional Fort Worth store.CarMax operates 123 used-car dealerships in 61 markets.

CarMax profits grow; more used-car stores on the horizon

Featured Stories