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Aug 31, 2021

CarMax Q2 2022 Earnings Report

CarMax's financial results for the second quarter of fiscal year 2022 were reported, showing record net revenues and increased unit sales.

Key Takeaways

CarMax reported record net revenues of $8.0 billion, a 48.7% increase compared to the prior year. Combined retail and wholesale used vehicle unit sales increased by 19.9%. Net earnings per diluted share decreased to $1.72, down from $1.79 per diluted share a year ago.

Net revenues reached a record $8.0 billion, up 48.7% year-over-year.

Combined retail and wholesale used vehicle unit sales increased 19.9% to 419,895 units.

Online retail sales accounted for 9% of retail unit sales, compared to 3% in the prior year.

CarMax Auto Finance (CAF) income increased 35.9% to $200.0 million.

Total Revenue
$7.99B
Previous year: $5.37B
+48.7%
EPS
$1.72
Previous year: $1.79
-3.9%
Used Units Sold
231.8K
Previous year: 217.33K
+6.7%
Wholesale Units Sold
188.1K
Previous year: 132.98K
+41.4%
Avg. Used Vehicle Price
$26.1K
Previous year: $20K
+30.8%
Gross Profit
$816M
Previous year: $752M
+8.4%
Cash and Equivalents
$58.1M
Previous year: $712M
-91.8%
Free Cash Flow
-$1.35B
Previous year: -$389M
+247.7%
Total Assets
$24.5B
Previous year: $21.2B
+15.1%

CarMax

CarMax

CarMax Revenue by Segment

Forward Guidance

CarMax is focused on growth and innovation, aiming to provide a fully self-service online experience to all retail consumers by the end of the fiscal year.

Positive Outlook

  • Continue to make investments in growth and innovation for our customers’ benefit
  • Remain on track to bring our fully self-service online experience to all of our retail consumers by the end of the fiscal year
  • Built our omni-channel platform to give every customer the ability to progress to a sale or buy regardless of how they shop with us
  • Enable sustainable growth
  • Create meaningful long-term shareholder value

Challenges Ahead

  • The effect and consequences of the Coronavirus public health crisis on matters including U.S. and local economies
  • Changes in general or regional U.S. economic conditions.
  • Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
  • Changes in the competitive landscape and/or our failure to successfully adjust to such changes.
  • Events that damage our reputation or harm the perception of the quality of our brand.

Revenue & Expenses

Visualization of income flow from segment revenue to net income