CarMax's used car portion saw their sales, during the third fiscal quarter, saw a 1.2% down turn when compared to other stores during the previous year.
But pre-tax earnings and earnings per share for the retailer were up, something president chief executive Bill Nash called a “testament to the strength of our diversified business model,” in a news release recapping CarMax’s quarterly performance for the period ending Nov. 30.
In a summary of the quarterly results, which were announced on Dec. 21, CarMax said pulled in net sales and operating revenue of $4.30 billion in its Q3, a 4.6-percent year-over-year gain.
Net earnings were at $190.3 million, up 27.9 percent. Net earnings per diluted share came in at $1.09, up 34.6 percent.
CarMax notes that its net earnings “benefited from a decrease in the effective tax rate to 23.2 percent from 33.9 percent in the prior year’s third quarter, primarily reflecting the effect of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”).”
Continuing on with some of the highlights of the period, CarMax increased its total used vehicle unit sales by 2.3 percent, moving 173,476 cars for the quarter. The aforementioned dip in comparable store used unit sales was due largely to softer store traffic, a trend partially balanced by better conversion.
A year ago, CarMax saw a lift in comparable store used unit sales helped by its six stores in the Houston area, following Hurricane Harvey. The company said that “excluding these stores from the calculation, our current quarter comparable store used unit sales would have grown by 2.3 percent.”
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