Important points
CarMax recorded increased retail sales in the second quarter, and profits and revenue beat expectations. Same-store sales increased 4.3% year over year. CEO Bill Nash said the positive results came despite the industry facing “automotive challenges.” The pressure of bad debt. ”
Shares rose Thursday after CarMax (KMX), the largest used car retailer in the U.S., reported better-than-expected results on increased retail vehicle sales.
The company reported second-quarter 2025 earnings per share (EPS) of $0.85, beating analysts surveyed by Visible Alpha by $0.02. Sales decreased 0.9% year-on-year to $7.01 billion, but also exceeded expectations.
Retail used vehicle sales increased by 5.1%
Retail used car sales increased by 5.1% to 211,020 units, while wholesale car sales decreased by 0.3% to 141,458 units. Same-store sales increased 4.3%.
Gross profit per retail unit was $2,269 and gross profit per wholesale unit was $975. Both were on par with last year’s second quarter.
The company purchased 300,000 vehicles, an increase of 2.9%, as purchases from dealers surged 61.4% during the same period. Consumer purchases fell by 1.2%.
CEO says he will manage his business through the “pressure of auto loan losses”
CEO Bill Nash said CarMax was pleased with the “continuous improvement of the business” while dealing with “the pressure of auto loan losses across the industry.”
CarMax shares rose about 6% in Thursday morning trading, moving into positive territory heading into 2024.
