CarMax earnings: Used car sales fell again last quarter amid inflation and affordability issues

Used-vehicle retail giant CarMax Inc. said it again sold fewer used vehicles in its first fiscal quarter due to inflation, fuel affordability issues vehicles and declining consumer confidence.

The company retailed a total of 240,950 used vehicles in the quarter ending May 31, down 11% from the same period last year. Same-store used vehicle sales also fell 12.7%.

However, CarMax saw its turnover jump 21% to 9.3 billion dollars in the first quarter. It also generated more profit per vehicle – $2,339 per vehicle sold, an increase of $134.

CarMax said it opened a new store in Edison, NJ, in the first quarter, its first in the New York metro market. It’s part of the company’s broader plan to open 10 new locations in fiscal year 2023.

Net income for the quarter fell to $252.3 million, down about 42% from $436.8 million a year earlier.

“While the used vehicle market environment was challenging in the first quarter, we continued to make progress on key strategic priorities that enable CarMax to grow its profitable market share, now and in the future,” CarMax CEO Bill Nash said in a statement.

CarMax-Shares rose 7.2% to close Friday at $98.36.