It’s just not the likes of JB Hi-Fi, Harvey Norman, Officeworks, City Chic, Noni-B, and Beacon Lighting that (among many others) are seeing a surge in online sales (and in most cases turning average sales efforts into stellar performances).
Car sales are still doing well for online car classifieds group Carsales which has seen an upturn in online interest in the past month or two.
The company told the ASX yesterday that it now see a 6% to 9% fall in net profit by for the full year, as the coronavirus crisis hit auto sales.
Carsales is predicting a reported net profit of $120 million to $124 million for 2019-20, down from last year’s $132 million result. Reported revenue is estimated to be between $393 million and $397 million, which will also be down on last year when $418 million was reported.
But inquiries about vehicles and traffic volumes on its Australian website continuing to improve in recent weeks. Between April 22 and June 16 inquiry volumes had grown very strongly on the same period last year, it said.
Cars were selling quicker because of increased demand from buyers following the easing of social distancing restrictions, it said. Research indicated an increase in first-time car buyers in the market, as well as households wanting to acquire an extra vehicle in order to avoid travel on public transport.
Carsales shares rose 6.2% to $18.
The company said the financials released yesterday were unaudited.
“The result ranges are an estimate only to keep the market as well informed as possible and we note significant volatility and uncertainty remains given the impact of COVID-19,” the company told the ASX.
The company said in April that about 250 of its Australian staff would be stood down temporarily, and that board and executive pay would be reduced by 20% for the entire June quarter.
In February it withdrew its outlook as the pandemic loomed large. The company waived all fixed and variable advertising charges for the month of April and gave a 50% cent discount in May to support its dealer customers and deferred payment of advertising invoices by 30 days.
Carsales said it had now “reverted to normal charging for our dealer customers in June, with the exception of new cars which continue to attract a 100% discount.
“We estimate the total support package provided to dealers in FY20 will be approximately $26m, reflecting our strong commitment to our industries during this challenging period.”
