CarMax's quarterly profit, revenue rise as pricing boosts used-car sales
KMX•CarMax's second-quarter profit rose to $165.3 million, or $1.16 per share, while revenue increased about 20% to $7.9 billion. Retail used-car sales rose 13.8% to 227,391 vehicles as gross profit per vehicle fell.
1. Sales and revenue rise
CarMax reported second-quarter profit of $165.3 million, or $1.16 per share, compared with $95.4 million, or $0.64 per diluted share, a year earlier. Net revenue rose about 20% to $7.9 billion in the three months ended August 31.
2. Pricing drives volume
Retail used-car sales climbed 13.8% to 227,391 vehicles. Retail gross profit per used vehicle fell to $2,105 from $2,216 a year earlier as the company used pricing actions to pursue volume over profit per vehicle.
3. Affordable-car shortage
Higher interest rates and limited availability of cheaper vehicles have prompted consumers to hold on to older cars longer. Vehicles priced below $15,000 had 29 days of supply, 15 days below the industry average, according to Cox Automotive data.
