CarMax Reports Sales Dip

By Staff Writer June 24, 2024

CarMax reported results for the first quarter ended May 31, 2024, showing retail used unit sales decreased 3.1% and comparable store used unit sales decreased 3.8% from the prior year’s first quarter; wholesale units declined 8.3% from the prior year’s first quarter, impacted by lower year-over-year seasonal appreciation.

The report showed CarMax delivered strong margins in retail, wholesale, and Extended Protection Plans (EPP). Gross profit per retail used unit of $2,347, was in line with last year while gross profit per wholesale unit of $1,064 and EPP of $563 per retail unit, both first quarter records.

The company bought 314,000 vehicles from consumers and dealers, down 8.6% versus last year’s first quarter, impacted by lower year-over-year seasonal appreciation.

Bill Nash,  CEO of CarMax.  

CarMax bought 35,000 vehicles through dealers, up 70.8% from last year’s first quarter.

The report listed CarMax Auto Finance (CAF) income of $147.0 million, grew 7.0% from the prior year first quarter due to growth in CAF’s average managed receivables and net interest margin percentage.

“I am encouraged by the trends we saw in the first quarter including continued year-over-year price declines, improvements in vehicle value stability, and ongoing growth in upper funnel demand,” said Bill Nash, president and chief executive officer. “We delivered strong retail, wholesale, and EPP gross profit per unit, sourced a record 35,000 vehicles from dealers, continued to actively manage SG&A, and repurchased over $100 million in shares of common stock.

“I am proud of the durable actions we have taken to support our future growth and to further differentiate the value and experience we offer to consumers.”

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Last modified on Friday, 28 June 2024 10:24