CarMax earnings rebound as higher vehicle volumes outweigh thinner unit margins

CarMax ($KMX) reported second-quarter fiscal 2027 revenue of $7.9 billion, up 19.5%, and diluted earnings of $1.16 per share, compared with $0.64 a year earlier. Retail used-vehicle sales increased 13.8% to 227,391 and wholesale volumes rose 15.9% to 160,344. The improvement came despite lower gross profit per vehicle: retail declined $111 to $2,105 and wholesale fell $135 to $858.

Higher volumes, stronger protection-plan margins and improved financing income supported the recovery. CarMax Auto Finance earned $135.6 million, up 32.1%, while selling and administrative expenses grew more slowly than sales. Management plans to restart share repurchases in the third fiscal quarter. The results show progress in improving price competitiveness, but the lower vehicle margins underline the trade-off between winning volume and preserving profit on each sale.

Sources:

• CarMax investor relations
• Timestamped issuer-release reproduction