We believe vehicle affordability challenges continued to impact our first quarter unit sales performance, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightening lending standards and prolonged low consumer confidence. Comparable store used unit sales declined 11.4% from the prior year’s first quarter, an improvement from the 22.4% and 14.1% year-over-year declines during last year’s third and fourth quarters. Total retail used vehicle unit sales declined 9.6% to 217,924 compared to the prior year’s first quarter. We believe these steps will enable us to come out of this cycle leaner and more effective, while also positioning us for future growth." "We are prioritizing projects that drive operating efficiencies and create better experiences for our associates and customers. We also continued to deliver strong retail and wholesale gross profit per unit along with SG&A reductions," said Bill Nash, president and chief executive officer. Our unit performance in used, wholesale and consumer and dealer buys all improved sequentially from the year-over-year trends in the second half of fiscal year 2023. "Our deliberate actions are driving improved trends in the business, despite the challenging macro environment. Net earnings per diluted share of $1.44, down from $1.56 a year ago the current year’s quarter included a $0.28 benefit in connection with a legal settlement. SG&A of $559.8 million decreased 14.8% or $96.9 million from last year’s first quarter, driven by the receipt of proceeds related to a favorable legal settlement as well as continued active cost management excluding the effects of the $59.3 million legal settlement, SG&A decreased 5.7% or $37.6 million.īought 343,000 vehicles from consumers and dealers, down 5.2% versus last year’s first quarter, and sequentially up 31.1% from last year’s fourth quarter.ĬarMax Auto Finance (CAF) income of $137.4 million, down 32.8% from the prior year first quarter due to compression in the net interest margin percentage and a higher provision for loan losses, partially offset by an increase in average managed receivables. Retail used unit sales declined 9.6%, and comparable store used unit sales declined 11.4%, each from the prior year’s first quarter wholesale units declined 13.6% from the prior year’s first quarter.ĭelivered strong margins in retail and wholesale gross profit per retail used unit of $2,361 and gross profit per wholesale unit of $1,042, both in line with the prior year’s first quarter. Net revenues were $7.7 billion, down 17.4% compared with the prior year first quarter. (NYSE:KMX) today reported results for the first quarter ended May 31, 2023. RICHMOND, Va., June 23, 2023-( BUSINESS WIRE)-CarMax, Inc.
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