CarMax Inc. posted a profit Friday for its fiscal third quarter and the car dealership chain said it will open three previously built stores in the next fiscal year, but doesn't plan any further store growth until the automotive market improves.
The company, which predominantly sells used vehicles, said its results benefited from stronger sales, cost-cutting efforts and gains from its financing division.
CarMax operates 100 stores and said sales rose about 19 % to $1.73 billion in the quarter, while sales at stores open at least a year rose 8 %.
Traffic and sales execution improved during the quarter despite low consumer confidence, tighter lending standards and double-digit unemployment.
CarMax has been focused on eliminating waste and improving execution to weather the weak automotive market and better position it for future growth.
Expenses for the third quarter fell 11.7 % to $192.1 compared with the year-ago period due to lower advertising spending and efforts to curb store and corporate overhead costs, the company said.
The Associated Press has contributed to the report.
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