Shares of CarMax (NYSE:KMX) sprang to life as the most recent quarterly numbers were released Friday.
Revenue of $7.7 Billion beat estimates by $180 million. Retail used unit sales declined 9.6%, and comparable store used unit sales declined 11.4%, each from the prior year’s first quarter; wholesale units declined 13.6% from the prior year’s first quarter.
The company also bought 343,000 vehicles from consumers and dealers, down 5.2% versus last year’s first quarter, and sequentially up 31.1% from last year’s fourth quarter.
Net earnings per diluted share of $1.44, down from $1.56 a year ago; the current year’s quarter included a $0.28 benefit in connection with a legal settlement.
Said CEO Bill Nash, “Our deliberate actions are driving improved trends in the business, despite the challenging macro environment. 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 SG&A reductions. We are prioritizing projects that drive operating efficiencies and create better experiences for our associates and customers. We believe these steps will enable us to come out of this cycle leaner and more effective, while also positioning us for future growth.”
KMX shares jumped $6.50, or 8.3%, to $84.79.
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