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Feb 28, 2022
CarMax Q4 2022 Earnings Report
CarMax reported mixed results with revenue increase offset by earnings decline due to macro factors and strategic investments.
Key Takeaways
CarMax reported a substantial increase in revenue driven by higher average selling prices in both retail and wholesale segments. However, net earnings per share decreased due to macro factors and increased SG&A expenses related to technology investments and strategic initiatives.
CarMax's share of the nationwide used vehicle market increased to a record 4.0% in calendar year 2021.
Net revenues rose 48.8% to $7.7 billion.
Combined retail and wholesale used vehicle unit sales increased 11.3% to 343,413 units.
The company bought approximately 324,000 vehicles from consumers, a 69.0% increase versus the prior year quarter.
CarMax
CarMax
CarMax Revenue by Segment
Revenue by Segment
Used Vehicles Revenue
CapyFin.comWholesale Vehicles Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
CarMax provided updated long-term targets, including selling between 2 million and 2.4 million vehicles and generating between $33 billion and $45 billion in revenue by fiscal 2026.
Positive Outlook
- Roll out and rapid adoption of our online instant appraisal offer has solidified our position as the nation’s largest buyer of vehicles from consumers
- Nearly doubling our fiscal 2022 inventory self sufficiency
- Propelling our wholesale business to new heights
- We continue to expand the availability of our end-to-end, unaided online experience, and we expect to have this capability available to 100% of customers by the end of our first quarter.
- We also continue to enhance our finance-based shopping experience, further positioning our business for growth.
Challenges Ahead
- The fourth quarter was adversely affected by macro factors
- Declining consumer confidence
- The Omicron-fueled surge in COVID cases
- Vehicle affordability
- The lapping of stimulus benefits paid in the prior year period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income