CarMax Q2 profit rises despite hit from Harvey

CarMax Inc.’s net income rose 12 percent in its fiscal second quarter as the largest used-vehicle retailer in the U.S. reported a “modest” impact on sales from Hurricane Harvey.
Profit increased to $181.4 million on higher unit sales in the period that ended Aug. 31, CarMax said Friday in a statement.
Profit per retail unit held steady, the company said. In addition, CarMax noted that its six Houston-area stores were closed most of the final week of the quarter by Hurricane Harvey, which had a “modest adverse effect” on same-store used unit sales.
Revenue grew 9.7 percent to $4.39 billion.
Retail sales of used vehicles increased 11 percent to 186,019 units, while wholesale unit sales edged up 0.4 percent to 105,508. On a same-store basis, retail unit sales rose 5.3 percent.
During the second quarter, as planned, CarMax opened three new stores: in Salisbury, Md.; Hartford, Conn.; and San Francisco. In September, it opened a store in Langhorne, Pa. CarMax plans to open stores in Tyler, Texas; Las Vegas; Colma, Calif.; and Renton, Wash., by the end of November.
CarMax added three markets to the list of where it plans to open stores. It plans new stores in Santa Fe, N.M.; Norman, Okla.; and Warner Robins, Ga., near Macon. All are scheduled to open in the quarter ending Aug. 31, 2019.
As previously disclosed, CarMax also plans stores in Myrtle Beach, S.C.; Manchester, N.H.; Golden, Colo.; Winterville, N.C.; McKinney, Texas; and Jensen Beach, Fla.
CarMax’s share price climbed after the earnings were released. By early Friday afternoon, CarMax shares were trading at $74.16, up 5.3 percent from the prior day’s close, in a market where the Dow Jones and S&P 500 indices were down modestly.
Fuente: Automotive News