Good news for CarMax, the company today posted its fourth quarter results.
The used car retailer posted increased net profits for the fourth quarter, despite sliding sales.
Total sales decreased 28 percent to $1.47 billion from $2.04 billion in the fourth quarter of fiscal 2008. For the fiscal year, total sales decreased 15 percent to $6.97 billion from $8.20 billion in fiscal 2008. Comparable store used unit sales declined 26 percent for the fourth quarter and 16 percent for the fiscal year.
The most significant factor affecting sales was a sharp decline in customer traffic compared with the prior year, president and CEO Tom Folliard said in a news release. He added that the weak economy was the largest factor in the comparable store sales decline.
Total gross profit decreased by $26.8 million, or 10 percent, to $230.3 million. However, the company's gross profit dollars per used unit increased by $325 to $2,040 per unit compared with $1,715 per unit in last year's fourth quarter.
The company had announced in December a plan to temporarily suspend store growth, but opened a superstore in Potomac Mills, Virginia. Construction on that store was already underway when the announcement was made. For the fiscal year, the company opened 11 superstores.