CarMax Inc. (NYSE:KMX), the biggest retailer of used cars in the U.S., said fiscal fourth-quarter profit dropped 20% after it sold fewer vehicles amid slower buyer traffic.
Net income in the three months ended Feb. 28 fell to US$122.1mln, or $0.67 a share, from $152.6mln, or $0.81 a share a year earlier, the company said in a statement today. That missed analysts’ estimates of $0.87 a share.
Sales of used vehicles declined 3% in the period, while they gained 7.5% for the year, CarMax said.
The shares dropped 2.4% to US$58.60 at 9:35 a.m., giving the company a market value of US$10.8bln.