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Elham AbolFateh

Automobile

Report: CarMax Q3 net income jumps 28% on tax gain

Saturday 22/December/2018 - 10:07 AM
Sada El Balad
Edited by: Rabea Yehia




CarMax Inc.'s profit jumped in the fiscal third quarter، partially boosted by a decrease in the corporate tax rate، the company said Friday. The largest used-vehicle retailer in the U.S. also expanded its store count in the quarter and launched an omni-channel in its Atlanta market this month، as Auto news said.

Net income rose 27.9 percent from the year earlier to $190.3 million، as the corporate tax rate fell to 23.2 percent، compared with 33.9 percent the year earlier، according to a company statement.

CarMax shares gained 4 percent to close at $58.96 while U.S. stock markets fell across the board. Net sales and operating revenue increased 4.6 percent to $4.3 billion.

Same-store retail sales fell 1.2 percent، which reflected lower store traffic but was partially offset by an improved conversion rate، according to the statement.

By comparison، in the fiscal third quarter of 2017، the company's six Houston-area stores drove unit-sales growth after Hurricane Harvey. Excluding the Houston-area stores، same-store unit sales would have risen 2.3 percent، the statement said.


Consolidated used-vehicle sales rose 2.3 percent to 173،476 units. Wholesale unit sales rose 10 percent to 110،403. Used-vehicle retail gross profit per unit held relatively flat at $2،133.

CarMax، of Richmond، Va.، tops Automotive News' list of the top 100 dealership groups based in the U.S.، ranked by used-vehicle retail sales. The company retailed 671،294 used vehicles in 2017.

By Nov. 30، 2019، CarMax plans to open 15 more stores and enter eight new television markets. Six of the 15 stores will be in small markets with populations of 600،000 or less، the statement said.

On Dec. 4، CarMax announced its omni-channel launch in Atlanta، its oldest market. CarMax has six stores in the suburbs of Atlanta، lining the city's perimeter، CEO Bill Nash said. The company plans to scale the omni channel to customers nationwide by February 2020. Through the program، shoppers can customize their buying experience، completing the transaction almost entirely online or integrating the online steps with steps taken in-store

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