Home / Business and Economy / CarMax Sales Surge 19.5% on Strong Unit Growth
CarMax Sales Surge 19.5% on Strong Unit Growth
30 Sep
Summary
- Total net revenues reached $7.9 billion, a 19.5% increase year over year.
- Net earnings per diluted share rose 81% to $1.16 from the prior year.
- Retail used unit sales increased 13.8% to 227,391 units.
CarMax, Inc. (NYSE:KMX) announced strong second-quarter fiscal 2027 results, with total net revenues increasing by 19.5% year over year to $7.9 billion. This growth was fueled by a 13.8% rise in retail used unit sales and higher average selling prices. Net earnings per diluted share surged by 81% to $1.16, boosted by unit growth and improved SG&A leverage. The company's 'Shift into GEAR' strategy, emphasizing a great offering, easy experience, adding value, and running lean, is showing positive traction.
Key operational improvements include enhanced price competitiveness and reconditioning efficiencies, which contributed to a 13% increase in comparable store used unit sales. CarMax Auto Finance income rose by 32.1% to $135.6 million, partly due to a reduced loan loss provision. Management also highlighted leadership appointments and signaled a return to share repurchases in the third quarter, aiming to strengthen the core business and drive sustained growth.
