Used-vehicle retail large CarMax Inc. mentioned it once more bought fewer used automobiles in its fiscal first quarter on account of inflation, automobile affordability points and waning client confidence.
The firm retailed a complete of 240,950 used automobiles within the quarter ending May 31, down 11 % from the identical time final yr. Comparable retailer used-vehicle gross sales additionally fell 12.7 %.
Still, CarMax noticed its income leap 21 % to $9.3 billion within the first quarter. It additionally introduced in additional revenue per automobile — $2,339 per every bought, a rise of $134.
CarMax mentioned it opened one new retailer in Edison, N.J., within the first quarter, its first within the New York metro market. That’s a part of the corporate’s bigger plan to open 10 new places in fiscal 2023.
Net earnings for the quarter tumbled to $252.3 million, down roughly 42 % from $436.8 million within the year-earlier interval.
“While the used-vehicle market environment was challenging in the first quarter, we continued to make progress on the key strategic priorities that enable CarMax to grow profitable market share, now and into the future,” CarMax CEO Bill Nash mentioned in an announcement.
CarMax shares rose 5.8 % to $97.06 in morning buying and selling.
Results from the corporate’s earnings report embody:
Q1 internet earnings: $252.3 million, in contrast with $436.8 million within the year-earlier interval
Q1 internet income: $9.3 billion, up 21 % from a yr earlier
Q1 retail automobile gross sales: 240,950, down 11 % from a yr earlier
Q1 wholesale automobile gross sales: 186,307, up 2.7 % from a yr earlier
CarMax ranks No. 1 on Automotive News’ checklist of the highest 100 retailers ranked by used-vehicle gross sales, with retail gross sales of 924,338 used automobiles in 2021.