(Reuters) -Used-car retailer CarMax Inc topped Wall Street estimates for quarterly revenue on Friday, helped by strong demand as more people opted for personal vehicles over public transport due to the COVID-19 pandemic.
Earlier in the month, the company had said it would hire 1,800 employees by summer-end to boost its production through reconditioning and preparing vehicles for sale.
Retail used-unit sales increased 100.6% to 270,799 units in the first quarter, CarMax said. Comparable store units rose 99.1% from a year ago
The company said a robust used-auto demand environment, driven by federal stimulus checks as well as a shift in the timing of customer tax refunds, helped comparable store sales growth.
Net income rose to $436.8 million, or $2.63 per share, in the quarter ended May 31, from $4.98 million, or 3 cents per share, a year ago.
Total revenue rose 138% to $7.70 billion, above estimates of $6.24 billion, according to Refinitiv data.
Reporting by Sanjana Shivdas in Bengaluru; Editing by Devika Syamnath
