Overview
- CarMax reported adjusted earnings per share of $1.31 and revenue of $8.01 billion, both above analyst forecasts.
- Net profit fell to $185.6 million and gross profit per used retail vehicle dropped $230 to $2,177, which the company attributed to targeted pricing cuts to drive sales.
- Comparable-store used-vehicle sales declined 0.8%, a smaller drop than analysts expected, while total retail used-vehicle units were roughly flat year over year.
- CEO Keith Barr outlined a four-pillar turnaround focused on competitive pricing, customer experience, profitability and cost restructuring and said the company will provide a fuller investor update later this year.
- CarMax plans operational and digital cost measures including lower reconditioning costs, logistics improvements and SG&A reductions, and the market reacted cautiously with shares edging lower as investors wait for concrete targets and timelines.