Retail and wholesale sales were both down year over year so the market has not turned the corner yet apparently. Not surprising based on what I see from the consumer sales side of my employer’s business.

KMX still continues to execute their playbook well. Gross profit per retail sale remained flat at around $2,347 and was the second highest quarter on record. Wholesale gross profit per unit was $1,064 which was good enough to be their fifth highest quarter ever. They just need sales volume to return. Maybe all the disruption at dealerships with the CDK hack will push some volume their way in Q2.

They did finally repurchase over $100M of shares in the quarter which is nice to see. Hopefully they continue to increase that amount going forward. With $2.26B authorized they can get much more aggressive if they want to.

I think they could have summed up the quarter on their call pretty quickly by saying “Executing to plan. Just need volume.”

Jeff

CarMax FAQ

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