CarMax, Inc. (NYSE:KMX) has reported its financial results for the second quarter ended August 31, 2025. The company experienced a 5.4% decrease in retail used unit sales and a 6.3% decrease in comparable store used unit sales, alongside a 2.2% decrease in wholesale units. Gross profit per retail used unit was reported at $2,216, while gross profit per wholesale unit stood at $993.
The company bought 293,000 vehicles from consumers and dealers, signifying a 2.4% decrease. CarMax Auto Finance (CAF) income decreased by 11.2% to $102.6 million, primarily due to an increase in the provision for loan losses. Net earnings per diluted share were reported at $0.64, compared to $0.85 in the same period last year.
The company also repurchased $180.0 million in shares of common stock during the quarter, demonstrating its commitment to returning value to shareholders. CarMax launched a new brand positioning campaign in late August, emphasizing its omni-channel experience and empowering customers to buy their way.
In terms of sales, combined retail and wholesale used vehicle unit sales decreased by 4.1% from the prior year's second quarter, with total retail used vehicle revenues decreasing by 7.2%. The company's digital capabilities supported 80% of retail unit sales, with omni sales accounting for 68% and online retail sales contributing 12% of retail unit sales.
The total gross profit was reported at $717.7 million, down 5.6% from the prior year's second quarter. Retail used vehicle gross profit decreased by 7.6%, while wholesale vehicle gross profit decreased by 0.4%. SG&A expenses decreased by 1.6% to $601.1 million, primarily driven by a reduction in share-based compensation.
CAF income decreased by 11.2% to $102.6 million, reflecting an increase in the provision for loan losses. The company executed its second non-prime securitization transaction, with expectations of a gain on sale of approximately $25-30 million in third-quarter income.
The company also opened three new store locations and one stand-alone reconditioning/auction center during the second quarter of fiscal 2026. CarMax's CEO, Bill Nash, expressed confidence in the company's long-term strategy and the strength of its earnings model despite the challenging quarter.
These results indicate both successes and challenges for CarMax during the second quarter of fiscal year 2026. Today the company's shares have moved -0.95% to a price of $57.05. Check out the company's full 8-K submission here.
