CarMax reported a drop in profits during the fiscal first quarter

Article by Christian A., on June 24, 2012

CarMax Inc. reported a drop in profits during the fiscal first quarter, demonstrating a decrease in the demand for new vehicles. The net income of the largest retailer of used cars in the U.S. for the first-quarter ended May 31, decreased to $120.7 million, or 52 cents per share. In comparison, its net income one year ago was $125.5 million, or 54 cents per share.

Its revenue rose 3% to $2.77 billion. Its gross margin fell from 14.3% a year ago to 13.8% this year. In this same quarter, new-vehicle sales dropped by 13% to 2,107 units. CarMax operates new-vehicle franchises with Nissan, Toyota, Chrysler and General Motors. In the first quarter, its total used unit sales increased by 3%.

The retailer said that its current operations include 112 used car superstores spread out in 56 markets. CarMax said that the total customer traffic and conversion at comparable stores were about the same as the first quarter of the previous year. CEO Tom Folliard released a statement to say that even if the comparable store used unit sales were flat, CarMax had strong used and wholesale gross profit per unit and higher CarMax Auto Finance income due to its solid execution.

Thomson Reuters said that analysts on average had anticipated earnings of 53 cents per share on revenue of $2.82 billion. CarMax said that it is planning to open 10 superstores in fiscal 2013, doubling the number of stores that opened in fiscal 2012.

If you liked the article, share on:

Topics: carmax

Comments

Recommended

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries