CarMax’s Q1 EPS of $1.31 topped estimates while $8.0B revenue beat forecasts, yet shares slid nearly 9% after a 0.8% drop in comparable-store used vehicle sales and a 9.5% decline in retail gross profit per unit. CEO Keith Barr will revamp digital-to-store integration, logistics and reconditioning to cut costs.
CarMax reported first-quarter EPS of $1.31, surpassing analyst estimates, and revenue of $8.0 billion versus forecasts of $7.4 billion. Comparable-store used vehicle sales declined 0.8%, total gross profit fell 4.4% to $854.4 million, retail used gross profit dropped 9.5%, and gross profit per unit dipped by $230 to $2,177, driving shares down nearly 9%.
CEO Keith Barr identified a disjointed online and in-store experience that hampers conversions and cited high costs and inefficient logistics, including excess vehicle transfers. Management will overhaul digital-to-store integration, streamline logistics network, accelerate store-to-customer processes and leverage technology to reduce reconditioning expenses while preserving vehicle quality.
Finance
