CarMax used-car gross sales down once more in newest quarter amid inflation, affordability woes

Used-vehicle retail big CarMax Inc. mentioned it again sold fewer used automobiles in its fiscal first quarter on account of inflation, car affordability points and waning client confidence.

The corporate retailed a complete of 240,950 used automobiles within the quarter ending Might 31, down 11 % from the identical time final yr. Comparable retailer used-vehicle gross sales additionally fell 12.7 %.

Nonetheless, CarMax noticed its income leap 21 % to $9.three billion within the first quarter. It additionally introduced in additional revenue per car — $2,339 per every offered, 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 is a part of the corporate’s bigger plan to open 10 new areas in fiscal 2023.

Web earnings for the quarter tumbled to $252.three million, down roughly 42 % from $436.eight million within the year-earlier interval.

“Whereas the used-vehicle market surroundings was difficult within the first quarter, we continued to make progress on the important thing strategic priorities that allow CarMax to develop worthwhile market share, now and into the longer term,” CarMax CEO Invoice Nash mentioned in an announcement.

CarMax shares rose 5.eight % to $97.06 in morning buying and selling.

Outcomes from the company’s earnings report embody:

Q1 web earnings: $252.three million, in contrast with $436.eight million within the year-earlier interval

Q1 web income: $9.three billion, up 21 % from a yr earlier

Q1 retail car gross sales: 240,950, down 11 % from a yr earlier

Q1 wholesale car gross sales: 186,307, up 2.7 % from a yr earlier

CarMax ranks No. 1 on Automotive Information’ list of the top 100 retailers ranked by used-vehicle sales, with retail gross sales of 924,338 used automobiles in 2021.