CarMax Q2 Net Revenues Up 19.5% to $7.88B

By Philip Seaworth • Tuesday, September 29 10:50 • Permanent Link

CarMax’s second quarter fiscal 2027 net revenues rose 19.5% to $7.88 billion from $6.59 billion a year earlier, as combined retail and wholesale unit sales climbed 14.7% to 387,735.

Retail used unit sales increased 13.8% to 227,391, while comparable store used unit sales rose 13.0%. Retail used vehicle revenue advanced 19.7% to $6.31 billion, helped by a 6.3% increase in average retail selling price to $27,623. Retail gross profit rose 8.1% to $478.6 million, but gross profit per retail used unit fell $111 to $2,105.

Wholesale unit sales increased 15.9% to 160,344 and wholesale revenue climbed 18.2% to $1.36 billion. Wholesale gross profit was essentially flat at $137.6 million, while gross profit per wholesale unit dropped $135 to $858.

Other sales and revenues increased 19.5% to $208.4 million. Extended protection plan revenue rose 23.0% to $141.6 million, and other gross profit jumped 33.1% to $183.3 million. Extended protection plan margin per retail unit increased $46 to $623.

CarMax bought 310,107 vehicles from consumers and dealers, up 5.9%. Consumer purchases were flat at 262,570, while dealer purchases jumped 53.7% to 47,537.

SG&A expenses increased 4.6% to $628.6 million, but SG&A per total unit improved by $157 to $1,621. The company said it remains on track for $200 million in exit-rate SG&A savings by the end of fiscal 2027.

CarMax Auto Finance income rose 32.1% to $135.6 million. The allowance for loan losses increased to $497.3 million, or 3.07% of auto loans held for investment, from 2.95% at the end of the prior quarter. CAF financed 40.9% of units sold, down from 42.6% a year ago, and its weighted average contract rate increased 60 basis points to 11.8%.

Net earnings per diluted share increased to $1.16 from $0.64. Total gross profit rose 11.4% to $799.5 million, and earnings before income taxes increased to $223.1 million from $127.1 million.

CarMax did not repurchase shares in the quarter and said it plans to resume buybacks at a modest level in the third quarter. It ended the quarter with $1.31 billion available under its repurchase authorization. Following these announcements, the company's shares moved -1.15%, and are now trading at a price of $56.55. If you want to know more, read the company's complete 8-K report here.

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