CarMax, Inc. (NYSE: KMX) came out with first-quarter earnings Friday.
The Richmond-based retailer of used cars said net sales and operating revenues increased 12.0% to $5.37 billion. Used unit sales in comparable stores increased 9.5%. Total used unit sales rose 13.0%.
Friday’s news release also disclosed that total wholesale unit sales increased 6.6%. CarMax Auto Finance (CAF) income increased 0.3% to $116.0 million.
Net earnings increased 11.8% to $266.7 million and net earnings per diluted share increased 19.5% to $1.59. Omni-channel experience is on track to be available to the majority of customers by the end of fiscal 2020.
Total gross profit increased 12.3% versus last year’s first quarter to $742.4 million. Used vehicle gross profit rose 13.1%, reflecting the 13.0% increase in total used unit sales. Used vehicle gross profit per unit remained stable at $2,215.
Wholesale vehicle gross profit increased 9.8% versus the prior year’s quarter, driven by the 6.6% increase in wholesale unit sales and an increase in wholesale vehicle gross profit per unit to $1,043 compared with $1,012 in last year’s first quarter.
Compared with last year’s first quarter, CAF income increased 0.3% to $116.0 million, reflecting a 7.9% increase in average managed receivables, largely offset by the effects of a higher loan loss provision.
According to CEO Bill Nash, "CarMax had an outstanding first quarter,I’m proud of our team and its commitment to delivering an exceptional experience to both our retail and wholesale customers, which drove our strong growth in sales, gross profit and earnings."
Shares hit the accelerator at Friday’s open, gaining $4.75, or 5.7%, to $87.75
