Home » CarMax suddenly finds used car sales growth
CarMax'sstock has been getting more investor attention as it continues to beat out expectations. Several investors believe CarMax is preparing rebound especially after their first quarter financial report and their announcement that sales have been increasing recently.
Other factors contributing to its strong results included favorable lending trends and restrained cost growth. The company's aggressive shift toward online selling, meanwhile, continued to show promise. Let's look at CarMax's latest earnings trends.
Customer traffic returns
The company endured falling customer traffic in 2018, which contributed to a second straight year of slowing sales growth. Comps were flat last year after rising by 2% in 2017 and by more than 4% in 2016.
The good news is that CEO Bill Nash and his team said trends began improving in late 2018, and this latest report gave investors evidence of the rebound strengthening. Revenue growth shot up to 10%, in fact, to mark CarMax's fastest expansion rate in more than a year.