CarMax on June 1 began their new quarter which reports they had a record-breaking Q1.
According to a press release by CarMax, Q1 came to a close with new revenues totaling 7.7 billion, 452,188 vehicles sold in retail and wholesale, and $25.6 million in revenue from “an unrealized gain on equity investment.”
“We delivered exceptional results in the first quarter thanks to excellent execution by our team in a high-demand environment,” President and Chief Executive Officer Bill Nash said. “Our strong performance, which included record net revenues and profitability, reflects the strength of our omni-channel experience and diversified business model across retail, wholesale and CAF."
CarMax revealed its Q1 financial results on a June 24 conference call, according to the release. Participants on the call included President and CEO Bill Nash, Executive Vice President, CFO Enrique Mayor-Mora and Senior Vice President, CAF Operations Jon Daniels.
“With the most customer-centric experience in our industry, a highly profitable operating and financial model, and significant opportunities to grow our existing businesses and expand across the broader used auto ecosystem, we remain confident in our ability to meet our long-term targets of revenue growth, total unit growth and market share gains,” Nash said.
The release recognizes that it was another record-breaking quarter even with the industry challenges the company faced.
The financial report shows CarMax as having a net revenue of $7.70 billion, an increase of 138.4% from Q1FY22 and 43% higher than its previous record first quarter during the fiscal year 2020. Wholesale unit sales were shown to have increased 186.6% to 181,389, a total 50% increase as compared to the fiscal year 2020's first quarter. CarMax also had a gross profit per used unit of $2,205 and a wholesale gross profit per unit of $1,025.
According to the release, the number of vehicles sold totaled 452,188 between both retail and wholesale channels, up 128% from the fiscal year 2022's Q1 and up 31% more than the fiscal year Q1 record. Overall, used vehicle sales increased by 100.6% with 270,799 vehicles; resulting in comparable store units increase of 99.1% as compared with a year ago and 16% two years ago. Of those sales, online transactions accounted for 8% of all transactions, 24% of net revenues, and totaled %1.9 billion. Revenue from other sales experienced an increase of 66.4%, or $66.2 million, compared with the first quarter of fiscal 2021.
The release states that CarMax ended Q1FY23 with a gross profit total of $924.5 million, an increase of 161.0% as compared to last year, and selling, general, and administrative expenses (SG&A) profit of $554.1 million for a 70.5% increase and its Auto Finance (CAF) income increased to $241.7 million as a result of favorable loan loss performance, higher net interest margin and its average managed receivables increase.
CarMax also reports having purchased 341,275 vehicles from consumers, 236% higher year-over-year and 77% over the first quarter of the fiscal year 2020. According to the press release, it is believed that CarMax became the largest online buyer of used consumer cars due to its newly offered online instant appraisal.
According to the release, CarMax hopes to meet its goal of reaching $33 billion in revenue and 2 million units sold per year by the fiscal year 2026.
The actual financial report can be found here.
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