This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

CEO: CarMax Focused On Customer Experience

Stocks in this article: KMX

MICHAEL FELBERBAUM

RICHMOND, Va. (AP) â¿¿ Used car retailer CarMax Inc. continues to focus on improvements to better serve customers and grow its business, CEO Tom Folliard told shareholders at its annual meeting Monday.

The head of the Richmond-based company said CarMax is enhancing its website, changing its existing store model to improve efficiency and the customer experience. It also is developing alternative and smaller store models to help it enter new or smaller markets in the U.S. Some stores are even using iPads and other technology to assist customers.

"Really we've been evolving CarMax for 15 years," Folliard said. "That's the end-game goal: Give them a better experience from the time they walk in the door to the time they leave so they are more likely to buy a car and they're more likely to tell their friends about it."

CarMax has seen its performance improve as a result of sales increases, cost-cutting efforts and gains from its financing division. But low consumer confidence, tighter lending standards and high unemployment have hindered the industry's recovery. Used car sales have typically been strong during the recession as buyers looked to cut costs out of job security fears.

In the last fiscal year, the company saw its earnings grow 10 percent to $413.8 million. Revenue increased 11 percent to a record $10 billion as it sold more than 408,000 used vehicles and an additional 316,649 vehicles at wholesale auction. Sales at stores open at least one year grew 1 percent during the fiscal year after increasing 10 percent the year earlier.

Last week, the company reported a 4 percent decline in its first-quarter profit on lackluster sales and profit margins. Revenue grew 3.5 percent, but was below Wall Street expectations. Sales at stores open at least one year were flat for the quarter after rising 6 percent and 9 percent in the same quarter the last two fiscal years.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs