CarMax (KMX) Q1 Earnings Miss Estimates, Revenues Fall Y/Y

Core Insights - CarMax Inc. reported first-quarter fiscal 2025 adjusted earnings per share of 97 cents, missing the Zacks Consensus Estimate of 99 cents and declining from $1.16 per share in the prior year [1] - The company's revenues for the quarter were $7.11 billion, falling short of the Zacks Consensus Estimate of $7.19 billion and contracting 7.5% year over year [1] Segment Performance - Used-vehicle net sales totaled $5.68 billion, down 5.4% year over year due to a decline in unit sales and average selling price (ASP) [2] - Units sold in the used-vehicle segment decreased 3.1% year over year to 211,132 vehicles, missing the forecast of 228,073 units [2] - The ASP of used vehicles decreased 2.7% from the year-ago quarter to $26,526, beating the projection of $26,191 [2] - Wholesale vehicle revenues contracted 17% year over year to $1.26 billion, below the projection of $1.32 billion due to lower-than-anticipated units sold and ASP [3] - Units sold in the wholesale segment decreased 8.3% to 147,685, missing the forecast of 161,977 [3] - The ASP for wholesale vehicles dipped 10.3% to $8,094, compared to the estimate of $8,139 [3] - Used-vehicle gross profit per unit (GPU) was $2,347, down from $2,361 in the prior year and lagging the estimate of $2,901.2 due to higher-than-expected cost of sales [8] Financial Overview - Selling, general and administrative expenses increased 14% year over year to $638.6 million [10] - As of May 31, 2024, CarMax had cash and cash equivalents of $218.9 million and long-term debt of $1.59 billion [10] - The company repurchased shares worth $104 million during the fiscal first quarter, with $2.26 billion remaining under the share repurchase authorization [4] Other Performance Metrics - Other sales and revenues increased 4.8% year over year to $179.5 million, exceeding the estimate of $166.7 million [9] - CarMax Auto Finance saw a 7% year-over-year rise in income to $147 million at the end of the fiscal first quarter [9] - As of May 31, 2024, CarMax operated 245 used car stores [11]