CarMax, Inc. (NYSE:KMX) today reported results for the third quarter ended November 30, 2011.
- Net sales and operating revenues increased 7% to $2.26 billion from $2.12 billion in the third quarter of last year.
- Comparable store used unit sales declined 3% in the third quarter compared with a 16% increase in the prior year period.
- Total used unit sales decreased 1%.
- Total wholesale unit sales increased 13%.
- CarMax Auto Finance (CAF) income rose 12% to $62.6 million.
- Net income was $82.8 million, or $0.36 per diluted share, compared with $82.4 million, or $0.36 per diluted share, earned in the third quarter of fiscal 2011.
Third Quarter Business Performance Review
“We are pleased to report another quarter of strong profits, despite a difficult sales comparison and the continued sluggish economy,” said Tom Folliard, president and chief executive officer. “We remain committed to investing in our long-term growth strategy. We now plan to open 10 stores in fiscal 2013 and are pleased to announce our plan to open between 10 and 15 stores per year during each of the following three fiscal years.”
Sales . We believe the 3% decline in comparable store used units resulted from several factors, including our toughest sales comparison in many quarters and the continuation of weak economic conditions and low consumer confidence for much of the third quarter. Our average used vehicle selling price remained higher than the prior year, reflecting the continuing effect of the tight supply of late-model used vehicles on our acquisition costs. However, average retails have begun to moderate from earlier this year due to shifts in mix, as well as recent declines in industry wholesale pricing.Wholesale unit sales increased 13% compared with the third quarter of fiscal 2011. Similar to the last several quarters, our wholesale volumes benefited from a strong increase in appraisal traffic.