CarMax Inc.’s profit jumped in the fiscal third quarter, partially boosted by a decrease in the corporate tax rate, the company said Friday. The largest used-vehicle retailer in the U.S. also expanded its store count in the quarter and launched an omni-channel in its Atlanta market this month.
Net income rose 27.9 percent from the year earlier to $190.3 million, as the corporate tax rate fell to 23.2 percent, compared with 33.9 percent the year earlier, according to a company statement.
CarMax shares gained 4.3 percent to $59.13 in late morning trading.
Net sales and operating revenue increased 4.6 percent to $4.3 billion.
Same-store retail sales fell 1.2 percent, which reflected lower store traffic but was partially offset by an improved conversion rate, according to the statement.
By comparison, in the fiscal third quarter of 2017, the company’s six Houston-area stores drove unit-sales growth after Hurricane Harvey. Excluding the Houston-area stores, same-store unit sales would have risen 2.3 percent, the statement said.
Consolidated used-vehicle sales rose 2.3 percent to 173,476 units. Wholesale unit sales rose 10 percent to 110,403.
Used-vehicle retail gross profit per unit held relatively flat at $2,133.
CarMax, of Richmond, Va., tops Automotive News‘ list of the top 100 dealership groups based in the U.S., ranked by used-vehicle retail sales. The company retailed 671,294 used vehicles in 2017.
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