Used-vehicle retail giant CarMax Inc. on Tuesday reported a steep downturn in net income and fewer retail used-vehicle sales but stable per-vehicle profit in its fourth fiscal quarter — a period hampered by prolonged economic headwinds.
CarMax reported net income of $69 million in the quarter ended Feb. 28, down 57 percent year-over-year. The company's net revenue in the quarter was $5.72 billion, down 26 percent from the year-earlier period. Its retail gross profit per used vehicle rose 3.7 percent to $2,277.
It retailed 169,884 used vehicles in the quarter, down 13 percent from the year-earlier period. Comparable store used-vehicle sales fell 14 percent. CarMax said it believed prolonged affordability challenges continued to impact its fourth-quarter vehicle sales, with headwinds remaining due to inflationary pressures, higher interest rates, tight lending standards and a continued drop-off in consumer confidence.
"Our deliberate steps to navigate the pressures facing the used-car industry are driving sequential improvements in our business, and we will continue to prioritize initiatives to increase efficiencies and create better experiences for our associates and customers across our diversified business model," CarMax CEO Bill Nash said in a statement.
CarMax shares rose 9.6 percent to close at $72.21 on Tuesday.
Results from the company's earnings report include:
Q4 net income: $69 million, down 57 percent from the year-earlier period.
Q4 net revenue: $5.72 billion, down 26 percent from a year earlier.
Q4 used-retail vehicles sold: 169,884, down 13 percent from a year earlier.
Fiscal year 2023 net income: $484.8 million, down 58 percent.
Fiscal year 2023 net revenue: $29.7 billion, down 6.9 percent.
Fiscal year 2023 used-retail vehicles sold: 807,823, down 13 percent.
CarMax ranks No. 1 on Automotive News' most recent list of the top 100 retailers ranked by used-vehicle sales, with retail sales of 924,338 used vehicles in 2021.
