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May 31, 2022

CarMax Q1 2023 Earnings Report

CarMax's financial performance declined due to macroeconomic factors and strategic investments.

Key Takeaways

CarMax reported a decrease in net earnings per diluted share to $1.56, down from $2.63 a year ago, impacted by declining used sales, a swing in the provision for loan losses, and a prior year unrealized gain on investment. While revenue increased by 21.0% to $9.3 billion, unit sales decreased by 5.5%. The company is focused on enhancing its e-commerce platform and integrating online and in-store experiences.

Net revenues increased by 21.0% year-over-year to $9.3 billion.

Combined retail and wholesale unit sales decreased by 5.5% compared to the prior year.

Retail used unit sales decreased by 11.0%, with a comparable store sales decline of 12.7%.

Net earnings per diluted share decreased to $1.56, down from $2.63 in the previous year.

Total Revenue
$9.31B
Previous year: $7.7B
+21.0%
EPS
$1.56
Previous year: $2.63
-40.7%
Used Units Sold
240.95K
Previous year: 270.8K
-11.0%
Wholesale Units Sold
186.31K
Previous year: 181.39K
+2.7%
Avg. Used Vehicle Price
$28.8K
Previous year: $22.5K
+28.0%
Gross Profit
$875M
Previous year: $925M
-5.3%
Cash and Equivalents
$95.3M
Previous year: $378M
-74.8%
Free Cash Flow
$436M
Previous year: -$171M
-355.0%
Total Assets
$26.3B
Previous year: $22.8B
+15.4%

CarMax

CarMax

CarMax Revenue by Segment

Forward Guidance

The company did not provide specific forward guidance in this earnings report.

Revenue & Expenses

Visualization of income flow from segment revenue to net income