Shares of CarMax (NYSE: KMX) rose more than 10% last month, according to data provided by S&P Global Market Intelligence , following its first-quarter earnings release.
The auto dealer saw revenue rise 12% year over year to $5.37 billion. Earnings per share, meanwhile, leapt 19.5% to $1.59. Both figures were well above Wall Street’s estimates for revenue of $5.18 billion and EPS of $1.49.
Used-unit sales in comparable stores rose an impressive 9.5%, driven in part by strong web traffic growth. The company said customer experience initiatives, a robust lending environment, and a shift in the timing of customer tax refunds into the first quarter also contributed to the gains.
“CarMax had an outstanding first quarter,” CEO Bill Nash said in a press release. “I’m proud of our team and its commitment to delivering an exceptional experience to both our retail and wholesale customers, which drove our strong growth in sales, gross profit, and earnings.”
Image source: Getty Images.
CarMax expects to open 14 new stores over the next year. The company also plans to make its omnichannel experience — which combines online shopping with in-store service options — available to the majority of customers by the end of fiscal 2020.
“We believe that no other company is in a better position to deliver this omnichannel experience efficiently and profitably,” Nash said. “This is truly an unmatched experience that we are confident is the future of car buying.”
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