April 4 (Bloomberg) -- CarMax Inc., the biggest U.S. auto dealer by market valuation, plans to buy back $1 billion in stock after reporting its biggest annual jump in comparable- store sales in more than a decade.
The board set a share-repurchase plan that expires at the end of next year, according to a statement from the Richmond, Virginia-based company. It reported a 7 percent rise in comparable sales at 117 stores for the fourth quarter and a 12 percent increase for the fiscal year ended Feb. 28. The company bought back $306 million in stock in that 12-month period.
The gain for the year “was our strongest since fiscal 2002, and for the first time, we retailed more than 500,000 vehicles in a single year,” CarMax said.
Net income for the fourth quarter fell 7.5 percent to $99.2 million, or 44 cents a share, from $107.2 million, or 46 cents, a year earlier. Analysts had estimated 54 cents, according to data compiled by Bloomberg. Revenue advanced 8.8 percent $3.08 billion. That compared to a $3.2 billion projection from analysts.
The shares have added 1.1 percent this year and slipped 0.7 percent to $47.56 in New York yesterday.