CarMax reported second-quarter fiscal 2027 revenue of $7.9 billion, up 19.5%, as used vehicle volumes accelerated and earnings increased sharply.
Combined retail and wholesale vehicle sales reached 387,735 units, up 14.7%.
Retail used vehicle sales increased 13.8%, including 13% comparable-store growth, while wholesale unit sales increased 15.9%.
Retail gross profit per used vehicle declined by $111 to $2,105, reflecting pricing actions intended to support stronger sales volumes.
Wholesale gross profit per unit decreased by $135 to $858.
Those pressures were partially offset by improving economics elsewhere in the business.
Extended Protection Plan margin per retail unit increased $46 to $623.
CarMax Auto Finance income increased 32.1% to $135.6 million, with CAF financing 22% of Tier 2 volume compared with 10% a year earlier.
Net earnings per diluted share jumped 81.3% to $1.16 from $0.64.
SG&A expenses increased 4.6% to $628.6 million, but SG&A per total unit declined by $157, or 8.8%, demonstrating leverage from higher transaction volumes.
CarMax is executing its four-pillar Shift into GEAR strategy, centered on improving its vehicle offering, simplifying customer experiences, increasing profitability across businesses including financing and protection plans, and reducing operating costs.
The company also plans to resume share repurchases during the third quarter of fiscal 2027.
CarMax will provide additional details on its growth strategy, initiatives, and milestones during a virtual Strategic Update scheduled for November 3.
KEY QUOTES:
“Our strong second quarter results reflect solid execution and early progress against Shift into GEAR, our four-pillar strategy to strengthen CarMax’s core business and return the company to sustained growth. We delivered 81% EPS growth as we strengthened our price competitiveness, increased Extended Protection Plan margins, expanded CAF’s share of Tier 2 originations, continued to enhance our digital experience, and drove material SG&A leverage. I am confident in our ability to build on this early momentum. We have a clear strategy, a solid foundation, and an exceptional team accelerating our progress to create long-term value for our shareholders.”
Keith Barr, President And CEO Of CarMax
