CarMax reported gross profit per retail vehicle of $2,361 and gross profit per wholesale vehicle of $1,042, both about the same as a year ago. Company executives said last quarter that CarMax was giving priority to preserving those margins.
The retailer purchased 343,000 vehicles from consumers and dealers, down 5.2 percent from the year-earlier period, but up 31 percent from its fiscal fourth quarter.
“Our deliberate actions are driving improved trends in the business, despite the challenging macro environment,” CarMax CEO Bill Nash said in a statement. “Our unit performance in used, wholesale and consumer and dealer buys all improved sequentially from the year-over-year trends in the second half of fiscal year 2023. We also continued to deliver strong retail and wholesale gross profit per unit along with [selling, general and administrative] reductions.”
CarMax shares rose 9.6 percent to $85.86 in early Friday trading as earnings results fared better than Wall Street expected.
Q1 net income: $228.3 million, down 9.5 percent from a year earlier.
Q1 net revenue: $7.7 billion, down 17 percent from a year earlier.
Q1 retail used-vehicle sales: 217,924, down 9.6 percent from a year earlier.
