CarMax has reported consistent gross profit per retail vehicle and gross profit per wholesale vehicle, with both figures remaining at $2,361 and $1,042 respectively, the same as the previous year. The company’s focus has been on maintaining these margins.
In terms of purchasing, CarMax bought 343,000 vehicles from consumers and dealers, which is a 5.2 percent decrease compared to the same period last year. However, this number represents a 31 percent increase from the previous fiscal quarter.
“In spite of the challenging macro environment, we have seen positive trends in our business due to the deliberate strategies we have implemented,” stated CarMax CEO Bill Nash. He further explained, “Our performance in the used, wholesale, and consumer and dealer buy segments has shown improvement compared to the second half of fiscal year 2023. Additionally, we have successfully achieved strong retail and wholesale gross profit per unit while also reducing our selling, general, and administrative expenses.”
CarMax shares experienced a significant boost of 9.6 percent, reaching $85.86, during early Friday trading. The company’s earnings results performed better than expected by Wall Street.
Q1 net income: $228.3 million, representing a 9.5 percent decline from the previous year.
Q1 net revenue: $7.7 billion, marking a 17 percent decrease from the previous year.
Q1 retail used-vehicle sales: 217,924 units sold, showing a 9.6 percent decrease from the previous year.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
