For nearly a quarter century, CarMax has satisfied its customers with excellent service and offered value that has instilled brand loyalty.
“It’s an exciting time for CarMax,” CarMax President Bill Nash said during the April 7 fourth-quarter earnings call, according to Seeking Alpha. “Looking back over the past 23 years, we couldn’t be more proud of the progress that we made. Our store base has grown to 158 stores, and as Tom mentioned earlier, we sold over one million vehicles this fiscal year for the first time ever. Our customers continue to give us high marks for excellent customer service and we have a world-class culture. We continue to execute our growth plan and currently plan to open 15 stores in fiscal 2017, while also focusing on returning value to our shareholders through our share repurchase plan, but we are never satisfied. And for those of you that have followed us for a long time, you know that this is the case.”
CarMax CEO Tom Folliard said during the call that the company posted a very solid fiscal year. Total revenue grew to more than $15 billion.
“We sold over one million vehicles total both in retail and wholesale for the first time ever, about 620,000 used cars and about 395,000 wholesale cars, while also delivering double-digit EPS growth for the year,” Folliard said.
Folliard pointed to the following drivers:
Used unit comps increased by 2.4%
Total used units grew a little over 6.5%
Wholesale units grew by 4.9%.
Net income increased 4.4%, to $623 million.
“Our data for the year indicates that, for calendar year 2015, we increased our share of the 0 to 10-year-old used vehicles by approximately 1%,” Folliard added. “And we continue to focus on returning value to our shareholders through our stock repurchase program. During the year, we bought back 16.3 million shares at a cost of $971 million.”