CarMax (KMX) drove its fiscal fourth-quarter profits 19% higher as the No. 1 U.S. used-car retailer enjoyed stronger-than-expected sales.
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Richmond, Va.-based CarMax said it earned $89.5 million, or 39 cents a share, in the quarter ended February 28, compared with a profit of $75.4 million, or 33 cents a share, a year earlier. Analysts had called for EPS of 38 cents.
Sales climbed 23% to $2.25 billion, surpassing the $2.18 billion the Street had been anticipating. Same-store sales of used units increased 12%, while total used unit sales rose 14%. CarMax said its wholesale unit sales leaped 41%.
“Comparable store used unit sales increased 12% in the fourth quarter, despite facing the toughest comparison of the year,” CEO Tom Folliard said in a statement, citing a “continued rebound” in customer traffic and “strong” sales execution. “We believe that our ability to consistently grow market share, regardless of the economic backdrop, is a testament to the strength of our consumer offer, the skill of our associates and the preference for our brand.”
Despite the earnings beat, shares of CarMax inched lower in the premarkets, falling 0.6% to $34.37. The stock has still rallied about 8% on the year and nearly 40% from a year ago.