Investing.com -- CarMax (NYSE:KMX) has posted a surge in third-quarter profit as an ongoing cost-cutting push helped the used car retailer offset recently sluggish customer demand.
Following a pandemic-era boom in the market for pre-owned autos, high inflation and elevated interest rates has led many potential car buyers to rein in spending.
Virginia-based CarMax has moved to counter this trend by tightly managing expenses, with selling general and administrative costs decreasing by 5.4% to $560 million in the three months ended on Nov. 30.
The drive served to bolster net earnings per diluted share, which more than doubled from a year ago to $0.52 despite a decline in net revenues.
“Our third quarter performance reflects the continued efforts of the team that have resulted in several quarters of sequential improvements across key components of our business, despite the persistent widespread pressures in the used car industry,” said Chief Executive Officer Bill Nash in a statement.
Shares in CarMax were higher in U.S. premarket trading on Thursday.