Revenue was down 17.4% during the quarter to $7.7B. The Richmond, Virginia-based company said it believed vehicle affordability challenges continued to impact unit sales performance as headwinds remained due to widespread inflationary pressures, higher interest rates, tightening lending standards and prolonged low consumer confidence.
Combined retail and wholesale used vehicle unit sales were down 11.3% to 378,972. Online retail sales accounted for 14% of retail unit sales, compared with 11% in the first quarter of last year. Retail used unit sales declined 9.6% year-over-year during the quarter and comparable store used unit sales were off 11.4%. Wholesale units were down 13.6% from a year ago.
Gross profit per retail used unit of $2,361 and gross profit per wholesale unit of $1,042 were noted to both be in line with the prior year’s level.
Looking ahead, CarMax (KMX) said it is prioritizing projects that drive operating efficiencies and create better experiences for customers. “We believe these steps will enable us to come out of this cycle leaner and more effective, while also positioning us for future growth,” stated CEO Bill Nash.
Shares of CarMax (KMX) shot up 7.88% in premarket trading to $84.50 vs. the 52-week trading range of $52.10 to $106.25. The auto retail stock trades above its 50-day, 100-day, and 200-day moving averages.
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