CarMax Inc ( (KMX) ) has released its Q2 earnings. Here is a breakdown of the information CarMax Inc presented to its investors.
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CarMax Inc., the largest retailer of used vehicles in the United States, is known for its innovative approach to automotive retail, offering customers a flexible, omni-channel buying experience. The company operates in the automotive retail sector and is recognized for its commitment to transparency and customer empowerment.
In its second quarter fiscal year 2026 earnings report, CarMax Inc. announced a decrease in retail used unit sales by 5.4% and a decline in net earnings per diluted share from $0.85 to $0.64 compared to the previous year. Despite these challenges, the company maintained solid unit margins and launched a new brand positioning campaign titled ‘Wanna Drive?’ to enhance its omni-channel experience.
Key financial metrics from the report include a 6.0% decrease in total net sales and operating revenues, amounting to $6.59 billion. The company’s gross profit per retail used unit remained stable at $2,216, while CarMax Auto Finance (CAF) income saw an 11.2% decline to $102.6 million due to increased provisions for loan losses. Additionally, CarMax repurchased $180 million in shares and opened new store locations in Alabama, California, and Maryland.
Looking ahead, CarMax plans to achieve at least $150 million in SG&A reductions over the next 18 months, reflecting its focus on operational efficiency. The company’s management remains confident in its long-term strategy and the strength of its earnings model, despite the current market challenges.