CarMax Reports Strong 3Q

By Staff Writer December 29, 2020

CarMax Inc., the nation’s largest retailer of used cars, recently reported strong results for the third quarter ended Nov. 30.

Net earnings for the third quarter increased 35.9 percent and net earnings per diluted share increased 36.5 percent from the prior year, driven by strong execution in a dynamic environment. Total used units sold increased 1.0 percent, while used unit sales in comparable stores were down 0.8 percent; gross profit per used unit of $2,151 was similar to the prior year quarter.

Total wholesale units increased 10.8 percent driven by a record third quarter buy rate; wholesale gross profit per unit decreased slightly to $906 despite sharp depreciation in the broader market.

CarMax Auto Finance (CAF) income increased 54.7 percent due to the combined effects of favorable loan loss performance, higher net interest margin and an increase in average managed receivables.

“We delivered strong EPS growth this quarter thanks to solid execution by our teams,” said Bill Nash, president and chief executive officer. “Despite the near-term market challenges due to the trajectory of the pandemic, our fundamentals remain robust and reflect the strength of our diversified business model spanning retail, wholesale, and auto finance.”

Rate this item
(0 votes)
Last modified on Tuesday, 29 December 2020 15:14