Overview

• U.S. used auto retailer's fiscal Q1 net revenue rose 6%, beating analyst expectations

• Adjusted EPS for fiscal Q1 fell to $1.31 from $1.38 a year ago

• Gross profit declined 4.4% yr/yr due to lower retail unit margins from pricing actions

Outlook

• CarMax targets $200 mln in SG&A exit rate savings by end of fiscal 2027

• Company to provide more details on growth strategy at strategic update in late Fall

• CarMax introduces four-pillar strategy to drive sustainable growth and operating performance

Result Drivers

• WHOLESALE GROWTH - Higher wholesale unit sales and increased average wholesale selling prices contributed to revenue growth

• PRICING ACTIONS - Lower retail gross profit per used unit reflected continued pricing actions to drive improved sales trend

• COST REDUCTIONS - SG&A expenses fell 3.7% due to lower compensation and benefits costs, supporting improved SG&A leverage

Company press release: ID:nBw2D35Bya

Key Details

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