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May 31, 2023

CarMax Q1 2024 Earnings Report

CarMax's financial performance declined due to macroeconomic headwinds, but strategic actions led to improved business trends.

Key Takeaways

CarMax reported a decrease in net revenues by 17.4% to $7.7 billion, alongside declines in retail and wholesale unit sales. Despite these challenges, the company maintained strong margins and reduced SG&A expenses, partially offset by a legal settlement benefit. The company also saw sequential improvements in unit performance and prioritized operating efficiencies.

Net revenues decreased by 17.4% year-over-year to $7.7 billion.

Retail used unit sales fell by 9.6%, and comparable store used unit sales declined by 11.4%.

Wholesale units decreased by 13.6% compared to the previous year.

SG&A expenses decreased by 14.8%, driven by a legal settlement and cost management efforts.

Total Revenue
$7.69B
Previous year: $9.31B
-17.5%
EPS
$1.16
Previous year: $1.56
-25.6%
Used Units Sold
217.92K
Previous year: 240.95K
-9.6%
Wholesale Units Sold
161.05K
Previous year: 186.31K
-13.6%
Avg. Used Vehicle Price
$27.3K
Previous year: $28.8K
-5.5%
Gross Profit
$817M
Previous year: $875M
-6.6%
Cash and Equivalents
$264M
Previous year: $95.3M
+177.2%
Free Cash Flow
-$322M
Previous year: $436M
-173.8%
Total Assets
$27B
Previous year: $26.3B
+2.4%

CarMax

CarMax

CarMax Revenue by Segment

Forward Guidance

CarMax plans to open a total of five new stores across the country and their first offsite production location in the Atlanta metro market in fiscal year 2024.

Revenue & Expenses

Visualization of income flow from segment revenue to net income