CarMax logged 26% rise in net profits in quarter ended Aug. 31

Article by Anita Panait, on September 26, 2013

CarMax Inc. posted a 26-percent surge in net profits to $140.3 million and an 18-percent jump in revenues to $3.25 billion in the fiscal quarter ended Aug. 31, 2013. CarMax has also disclosed the locations of five planned used-car dealerships, bringing to 17 the total number of stores the retailer plans to open by Aug. 31, 2014.

According chief executive Tom Folliard, CarMax has not changed its plans to open 30 to 45 used-car dealerships over the 36 months that started March 1, 2013. He remarked that the 17 new stores over the next 12 months is just a refinement of the timing and the company has not changed its projections. CarMax sold 21 percent more used cars and trucks in the fiscal quarter ended Aug. 31, 2013 to 134,854 units, with sales at stores open for at least one year surged 16 percent.

According to Folliard, CarMax's sales mix has been consistent over the past few years, with vehicles five years and older accounting for around 25 percent while trucks and SUVs make up 25 percent. Sales of compact and mid-sized cars accounted for nearly 40 percent.

He noted that the retailer’s mix of vehicles will vary based on customer demand. According to CarMax, the first stores will be added in Madison, Wis.; Reno, Nev.; Lynchburg, Va.; Milwaukie, Ore.; Rochester, N.Y.; Dothan, Ala.; and Spokane, Wash. It also will add stores Mechanicsburg, Pa., and Fort Worth, Texas, where it already has a presence.

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