CarMax Had a Rough Quarter. Why I'm Still Betting on Its Business Over Carvana

On the cost side, CarMax experienced a 3.1% increase in selling, general, and administrative costs (excluding the legal settlement). Inflation is an ongoing issue, and it's hampering profitability. That said, it wasn't all bad with CarMax delivering gross profit per retail unit sold of $2,347, flat year over year, and record extended protection plan sales of $563 per unit. In late February, Carvana noted, "Net income for FY 2023 totaled $150 million and benefited by $878 million gain on debt extinguishment ...