When is Satellite Radio going to address opportunities in the pre-owned market?
June 27, 2006"Point of purchase" opportunities in the pre-owned vehicle market are huge...when is satellite radio going to do something about this?With Carmax and AutoNation accounting for a growing percentage of vehicle sales, why doesn't satellite radio make a bigger push this sector? It seems like unit sales and installation could be profitable for the retailers, and satellite radio could significantly expand it's reach. What gives?
Here is an excerpt from MSNBC (June 21, 2006) on the most recent CarMax earnings report:
"CarMax Maxes Out Earnings
Economies of scale help the used-car superstore burn rubber in Q1 2007.CarMax
(NYSE: KMX) shares leapt as much as 11% in early trading Monday (ending the day up 8%) on news that the auto retailer/wholesaler had run a monster truck over analyst estimates.
For its fiscal first quarter of 2007, CarMax reported a series of "50s:"
$56.8 million in net profits
$0.53 per share
54% better profits than last year.
And the numbers underlying those "headliners" look even better. For example, same-store sales grew a strong 6% year over year. Inventory turns came in healthy at 8.8 times -- meaning that over the last year, the company sold out and refilled its inventory nearly three times in each four-month period. And the slight decline in gross margins didn't prevent CarMax from expanding its operating and net margins significantly. "
6/26/2006 11:00:00 PM
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