CarMax, Inc. (KMX), a retailer of used vehicles, on Thursday reported a 4 percent decline in profit for the first quarter, reflecting comparable store used unit sales that were flat with the year-ago period. Revenue for the quarter missed analysts' estimates. The company's new vehicle sales decreased 10.4 percent in the quarter.
In the quarter, used vehicle sales grew 5.7 percent to $2.19 billion, while wholesale vehicle sales declined 2.1 percent to $467.8 million.
CarMax noted that the decline in wholesale unit sales reflected the challenging year-over-year comparison, as well as a shift in the calendar that resulted in one less Tuesday auction date.
New vehicle sales declined 10 percent, while other sales and revenues decreased 9 percent.
Total used unit sales rose 3 percent, while wholesale unit sales declined 2 percent. New unit sales in the quarter fell 13 percent, compared to a 14 percent increase last year. sComparable store used unit sales were flat with the year-ago period.
Tom Folliard, president and chief executive officer of CarMax said, "Although comparable store used unit sales were flat, solid execution resulted in strong used and wholesale gross profit per unit and higher CAF income."
Wholesale vehicle gross profit declined 5 percent, as a result of a decrease in wholesale unit sales and a reduction in wholesale gross profit per unit. Used vehicle gross profit per unit was virtually unchanged compared to the year-ago period.
Richmond, Virginia-based CarMax's net income for the first quarter was $120.75 million or $0.52 per share, down from $125.50 million or $0.54 per share in the year-ago period.
On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.53 per share. Analysts' estimates typically exclude special items.
Net sales and operating revenues for the quarter grew 4 percent to $2.77 billion from $2.68 billion in the prior-year quarter, but missed analysts' consensus estimate of $2.81 billion.
CarMax Auto Finance unit's income increased 8 percent in the quarter to $75.18 million.
Looking ahead, CarMax affirmed its plans to open ten superstores in fiscal 2013, double the number opened in fiscal 2012.
KMX closed Wednesday's trading at $27.90, down $0.62 on a volume of 2.25 million shares.
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