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Aug 31, 2023

CarMax Q2 2024 Earnings Report

CarMax's financial performance declined in Q2 2024, with revenue and unit sales decreasing, but margins remained strong and SG&A expenses were reduced.

Key Takeaways

CarMax reported a decrease in net revenues by 13.1% to $7.1 billion, alongside declines in retail used unit sales and wholesale units. However, the company maintained strong margins in both retail and wholesale, reduced SG&A expenses by 12.1%, and intends to resume share repurchases in the third quarter.

Net revenues decreased by 13.1% year-over-year to $7.1 billion.

Retail used unit sales declined by 7.4%, and wholesale units decreased by 11.2%.

Gross profit per retail used unit was $2,251, consistent with the prior year, while wholesale gross profit per unit increased to $963.

SG&A expenses decreased by 12.1% due to cost management efforts.

Total Revenue
$7.07B
Previous year: $8.15B
-13.1%
EPS
$0.75
Previous year: $0.79
-5.1%
Used Units Sold
200.83K
Previous year: 216.94K
-7.4%
Wholesale Units Sold
141.84K
Previous year: 159.68K
-11.2%
Avg. Used Vehicle Price
$27.5K
Previous year: $28.7K
-4.0%
Gross Profit
$697M
Previous year: $737M
-5.5%
Cash and Equivalents
$521M
Previous year: $56.8M
+817.9%
Free Cash Flow
$50.7M
Previous year: -$161M
-131.5%
Total Assets
$27.3B
Previous year: $26.5B
+3.1%

CarMax

CarMax

CarMax Revenue by Segment

Forward Guidance

CarMax intends to resume share repurchases in the third quarter of this year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income