CarMax Disappoints as Used Car Prices Fall
DETROIT -(Dow Jones)- Used car retailer CarMax Inc. (KMX) on Thursday said fiscal fourth-quarter net income rose 15% driven by a 12% increase used vehicle sales and an income boost from its financing unit.
The Richmond-based retailer added, though, that used vehicle selling prices moderated "slightly" in the fourth quarter from earlier in the year and wholesale vehicle average selling prices were down.
CarMax has seen healthy sales in the past year and has expanded its store base by 15%. The company has set up a no-haggle, low-hassle used car superstore model.
Despite turmoil among U.S. auto makers, sales at car dealerships has remained relatively strong.
Net income for the fourth quarter ended Feb. 28 increased 15% to $42.1 million, or 19 cents a share, from $36.7 million, or 17 cents a share, a year earlier, adjusted for a 2-for-1 stock split on March 26.
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