RICHMOND, Va. -

CarMax saw record results for its fiscal third quarter of 2014, with total used unit sales rising by 15 percent. And that was one of many double-digit increases the company reported.

The company also enjoyed a 10-percent rise in used unit sales in comparable stores over the year-ago period.

This spike was due in part from “improved execution in our stores and an attractive consumer credit environment, as well as a modest increase in store traffic,” the company explained.

Gross profit increased 11 percent to $381.7 million, a reflection of this spike in used-vehicle sales.

In fact, used-vehicle gross profit rose by a significant 15 percent, with used-vehicle gross profit per unit remaining “comparable” with the prior year period at $2,149.

Wholesale vehicle unit sales also grew, rising by 4 percent, compared with the same period of last year.

This rise is a reflection of the growth in the company’s store base, according to CarMax. 

During the third quarter of fiscal 2014, CarMax opened three stores, including one in Jackson, Tenn.; one in Brandywine, Md.; and one in the St. Louis market.

And the company’s expansion didn’t stop there.

Tom Folliard, president and chief executive officer of CarMax, also explained that after the third quarter ended, CarMax also opened a second store in St. Louis and two stores in the Philadelphia market, according to a transcript of the Q3 conference call provided by Seeking Alpha, which can be found at www.seekingalpha.com.

They also announced four planned openings for next year’s third quarter.

“Three are in new markets for CarMax, including Portland, Ore., Tupelo, Miss., and Reno, Nev. We will also open our third store in the Raleigh market,” Folliard said during the call.

And with net earnings growing by 12 percent to $106.5 million, Folliard said, “We are pleased with our continued growth in sales and earnings.  The earnings growth was driven by double digit increases in total used units and CAF income.”

CarMax Auto Finance also reported a successful quarter, with income increased 16 percent to $83.9 million.

This was “a result of the 24-percent increase in average managed receivables, partly offset by a lower total interest margin,” the company explained.

And in the fourth quarter of fiscal 2014, CAF plans to launch a test originating loans for customers who typically would be financed by CarMax’ subprime providers.

“Given the relevance of subprime to our business and the overall market, we believe it is prudent to gain further insight into underwriting and servicing accounts within this credit profile,” company officials said. “Over the next 12 months, we plan to originate approximately $70 million of loans in this test. The test will be funded separately from our current portfolio and not included in our current public securitization program.”

Interestingly, along with sales, the company experienced large increases in online traffic.

During the Q3 conference call, Folliard shared the average monthly Web visits neared 12 million hits per month, up 36 percent compared to last year’s third quarter.

And mobile usage is up, as well.

“This quarter was the first during which more than 50 percent of our traffic came from devices other than desktops or laptops. Average monthly visits to our mobile site represented about 26 percent of total visits, and visits utilizing our iPhone or Android app represented nearly 12 percent of our traffic,” Folliard said.
 

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