CarMax, Inc. (NYSE:KMX) the largest U.S. retailer of used cars, today reported results for the third quarter. Net sales and operating revenues increased 11.5% to $4.79 billion.
Total used vehicle unit sales increased 11.0%, including a 7.5% increase in comparable store used unit sales compared with the prior year’s third quarter. The comparable store sales performance reflected strong conversion, which was aided by continued support from our third-party lending partners; solid growth in web traffic; and a favorable consumer response to our consumer initiatives.
What’s more, CarMax Auto Finance income increased 3.9% to $114.0 million.Net earnings declined 9.0% to $173.2 million and net earnings per diluted share declined 4.6% to $1.04.
Omni-channel experience remains on track to be available to the majority of customers by the end of fiscal 2020, and we plan to complete the rollout in fiscal 2021.
KMX reported other income of $6.6 million in the third quarter of fiscal 2020 compared with other expense of $2.8 million in the prior year’s third quarter. The increase was primarily due to an unrealized gain on an investment recorded in the current year period.
Said CEO Bill Nash, "We are pleased with our strong unit sales growth this quarter.
"Our retail sales strength was a direct result of our ability to execute well, with solid performance in operations, financing, customer progression, and marketing all contributing to our growth. In addition, we benefited from a favorable underlying used car sales environment."
KMX shares doffed $4.69, or 4.8%, to $94.10
