By Katherine Hamilton
Carmax fourth-quarter profit rose as used-car prices inched up.
The used-car retailer posted a profit of $89.9 million, or 58 cents a share, in the three months ended in February, compared with $50.3 million, or 32 cents a share, a year earlier.
Revenue rose 7% to $6.0 billion, in line with what analysts polled by FactSet forecasted.
Same-store used-unit sales increased 5%. Total used-unit sales rose 6.2% and used vehicles' average selling price was 0.6% higher than a year before.
Selling, general and administrative expenses grew 5% primarily because of an increase in compensation and advertising spending, Carmax said.
If implemented, tariffs could be a mixed bag for Carmax, analysts say. Both new and used vehicle prices are set to rise due to increased costs for automakers. That could motivate some car shoppers to shift from new to used vehicles, but lower-income consumers may steer away from buying at all and try to repair and hang onto existing cars for longer.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 10, 2025 07:15 ET (11:15 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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