CarMax's quarterly profit, revenue rise as pricing boosts used-car sales
KMX•CarMax's second-quarter revenue rose about 20% to $7.9 billion, while profit increased to $165.3 million, or $1.16 per share. Retail used-vehicle sales rose 13.8% to 227,391 vehicles.
1. Sales and earnings rise
CarMax reported higher second-quarter profit and revenue as pricing actions helped drive used-car sales. Profit was $165.3 million, or $1.16 per share, compared with $95.4 million, or $0.64 per diluted share, a year earlier.
2. Pricing and inventory
Retail used-vehicle sales rose 13.8% to 227,391, while gross profit per used vehicle fell to $2,105 from $2,216 a year earlier. CEO Keith Barr said CarMax shifted inventory toward newer, lower-mileage vehicles as its higher-income customer base widened. Hybrids and electric vehicles accounted for a modestly larger share of sales, but gas-powered vehicles remained the vast majority.
3. Used-car supply
CarMax used pricing actions to pursue sales volume over profit per vehicle. Vehicles priced below $15,000 had 29 days of supply, 15 days below the industry average.
