Used car retailer CarMax, Inc. (NYSE: KMX) on Friday reported a sharp decline in first-quarter earnings, despite a double-digit increase in revenues. The bottom-line performance was negatively impacted by higher costs.
Net income decreased to $252.3 million or $1.56 per share in the first quarter of 2023 from $436.8 million or $2.63 per share in the same period of 2022. The latest number topped expectations.
The bottom line was hurt by an increase in operating expenses and higher provision for loan losses, which was partially offset by a 21% increase in revenues to $9.3 million. Analysts had predicted a slower growth.
Read management/analysts’ comments on quarterly earnings
“For the past several years, our priorities and investments have focused on building a leading e-commerce platform that integrates buying and selling cars with our best-in-class store experience. All of our retail customers are now able to transact online on their own,” said Bill Nash, chief executive officer of CarMax.