Used-vehicle retail giant CarMax Inc. said it again sold fewer used vehicles in its fiscal first quarter as a result of inflation, vehicle affordability issues and waning consumer confidence.
The company retailed a total of 240,950 used vehicles in the quarter ending May 31, down 11 percent from the same time last year. Comparable store used-vehicle sales also fell 12.7 percent.
Still, CarMax saw its revenue leap 21 percent to $9.3 billion in the first quarter. It also brought in more profit per vehicle — $2,339 per each sold, an increase of $134.
CarMax said it opened one new store in Edison, N.J., in the first quarter, its first in the New York metro market. That’s part of the company’s larger plan to open 10 new locations in fiscal 2023.
Net earnings for the quarter tumbled to $252.3 million, down roughly 42 percent from $436.8 million in the year-earlier period.
“While the used-vehicle market environment was challenging in the first quarter, we continued to make progress on the key strategic priorities that enable CarMax to grow profitable market share, now and into the future,” CarMax CEO Bill Nash said in a statement.
CarMax shares rose 5.8 percent to $97.06 in morning trading.
Results from the company’s earnings report include:
Q1 net earnings: $252.3 million, compared with $436.8 million in the year-earlier period
Q1 net revenue: $9.3 billion, up 21 percent from a year earlier
Q1 retail vehicle sales: 240,950, down 11 percent from a year earlier
Q1 wholesale vehicle sales: 186,307, up 2.7 percent from a year earlier
CarMax ranks No. 1 on Automotive News’ list of the top 100 retailers ranked by used-vehicle sales, with retail sales of 924,338 used vehicles in 2021.
