CarMax Inc. reported that net sales and operating revenues declined 39.8 percent to $3.23 billion for the first quarter ending May 31.

Total used vehicle unit sales declined 39.8 percent, including a 41.8 percent decrease in comparable store used unit sales compared with the prior year’s first quarter. The comparable store sales performance reflected the combined effects of Coronavirus-related store closures and restrictions on operations, as well as reduced customer traffic resulting from the economic impact of the pandemic and nationwide shelter-in-place orders.

Total wholesale vehicle unit sales declined 47.6 percent compared with the first quarter of fiscal 2020. Prior to the current quarter, almost all of CarMax’s auctions were conducted as in-person, physical auctions. During the quarter, it successfully transitioned its wholesale auctions to an online platform.

Sales have progressively improved since hitting a trough in early April; comparable store used unit sales for the two weeks ended June 14 were within 10 percent of last year’s sales, with many stores generating positive comparable stores sales.

The quarter showed strong margin management execution during a period of unprecedented depreciation; used and wholesale gross profit per unit for the first quarter were $1,937 and $978, respectively. The company grew its liquidity position during the quarter by selling through inventory and quickly aligning costs to lower sales volumes.

Omni-channel rollout is almost complete, and customers can now buy a car via curbside pickup at 200 stores nationwide.

Net earnings declined 98.1 percent to $5.0 million and net earnings per diluted share declined 98.1 percent to $0.03. The current quarter’s results included $122.0 million in the CarMax Auto Finance (CAF) provision for loan losses, which included an increase of $84.0 million, or $0.38 per diluted share, in its estimate of lifetime losses on existing loans resulting from the coronavirus-related turmoil and worsening economic factors. Net earnings per diluted share for the current quarter also included a one-time benefit of $0.18 in connection with our receipt of settlement proceeds in a previously disclosed class action lawsuit.

 

CarMax Inc., the nation’s largest retailer of used cars, reported record sales and earnings for the fourth quarter and fiscal year ended Feb. 29, but acknowledged the ongoing challenge of the coronavirus pandemic.

“The coronavirus pandemic is unprecedented,” said Bill Nash, president and chief executive officer. “The situation is dynamic and changing quickly, making it difficult to predict what the immediate future holds. However, we believe we have the leadership experience, liquidity, resources, financial stability and partners in place to withstand the current environment and be well-positioned for when the economy and consumers rebound.”

In the fourth quarter, net sales and operating revenues increased 14.9 percent to $4.96 billion. For the fiscal year, net sales and operating revenues increased 11.8 percent to $20.32 billion. Total used unit sales rose 14.7 percent in the fourth quarter and 11.2 percent for the fiscal year. Used unit sales in comparable stores increased 11.0 percent in the fourth quarter and 7.7 percent for the fiscal year. Total wholesale unit sales increased 2.0 percent in the fourth quarter and 4.2 percent for the fiscal year.

CarMax Auto Finance income increased 7.9 percent to $111.9 million in the fourth quarter. For the fiscal year, CAF income increased 4.0 percent to $456.0 million. In the fourth quarter, net earnings increased 11.6 percent to $214.9 million and net earnings per diluted share increased 15.0 percent to $1.30.

CarMax, Inc. the nation’s largest retailer of used cars, announced it is partnering with, and investing in the automotive research site Edmunds.

CarMax is investing $50 million to acquire a minority stake in the company. Edmunds has been consistently recognized as one of the most trusted online resources for automotive information, and an industry leader in digital car shopping innovations.

“This strategic relationship further strengthens CarMax’s new omni-channel experience,” said Bill Nash, CarMax president and CEO, “which empowers customers to buy a car on their terms, whether completely from home, in-store, or a seamlessly integrated combination of both.

“Edmunds’ proprietary content, comprehensive automotive market insights and streamlined user experience across the car buying and selling journey will allow us to deepen our engagement with customers shopping online.”

CarMax, Inc. reported increased revenue, used unit sales and total used sales in its results for the third quarter ended Nov. 30.

Net sales and operating revenues increased 11.5 percent to $4.79 billion. In addition, used unit sales in comparable stores increased 7.5 percent. Total used unit sales rose 11 percent, total wholesale unit sales increased 3.3 percent and CarMax Auto Finance (CAF) income increased 3.9 percent to $114.0 million.

However, net earnings declined 9 percent to $173.2 million and net earnings per diluted share declined 4.6 percent to $1.04.

CarMax will report its third quarter financial results before the market opens on Dec. 20. It will host a conference call with investors at 9 a.m. ET to discuss these results.  Participants on the call will include Bill Nash, president and CEO; Tom Reedy, executive vice president - finance, and Enrique Mayor-Mora, senior vice president, CFO.

CarMax has more than 200 stores nationwide, and during the latest fiscal year sold nearly 750,000 used cars and 450,000 wholesale vehicles at its in-store auctions.

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