Net income increased sharply to $210.4 million or $1.38 per share in Q1 from $152.4 million or $0.97 per share in the prior-year quarter, exceeding Wall Street’s estimates by a wide margin.
CarMax purchased around 336,000 vehicles from consumers and dealers, which is up 7.2% year-over-year. Total retail and wholesale used vehicle unit sales increased 5.8% from last year to 379,727, with the company’s digital capabilities supporting around 80% of retail unit sales. It opened two new stand-alone reconditioning/auction centers in the May quarter.
“Our associates, stores, technology, and digital capabilities, all seamlessly tied together, enable us to provide the most customer-centric car buying and selling experience. This is a key differentiator in a very large and fragmented market that positions us to continue to drive sales, gain market share, and deliver significant year-over-year earnings growth for years to come,” said CarMax’s CEO Bill Nash.