- CarMax Inc. (KMX, Financial) reports a 42.3% rise in net earnings per diluted share to $1.38.
- Retail used unit sales increase by 9.0%, leading to a 12.8% boost in total gross profit.
- Company continues share buybacks, with $199.8 million in shares repurchased in Q1 FY2026.
CarMax Inc. (KMX), the nation's leading used car retailer, announced its first-quarter fiscal year 2026 results today, highlighting a significant 42.3% increase in net earnings per diluted share, reaching $1.38 compared to $0.97 in the same quarter last year. The company achieved a substantial boost in retail used unit sales, up by 9.0%, and saw comparable store used unit sales rise by 8.1%.
The overall gross profit for the period increased by 12.8% to $893.6 million, fueled by higher unit volumes and robust unit margin performance. Notably, CarMax reported a record high gross profit per retail used unit at $2,407, marking a $60 increase per unit. Wholesale units also saw growth, with a 1.2% rise in sales, though the gross profit per wholesale unit decreased slightly by $17 to $1,047.
CarMax's strategic initiatives included broadening its CarMax Auto Finance (CAF) non-prime funding program to support growth across its financing spectrum while managing associated risks. Despite this strategic push, CAF income saw a decline of 3.6% to $141.7 million due to a higher provision for loan losses.
In a continued effort to enhance shareholder value, CarMax accelerated its share repurchase activities, buying back $199.8 million worth of its common stock in the first quarter. The company remains strongly positioned in the market, with 336,000 vehicles purchased from consumers and dealers, a 7.2% increase from the previous year.
CarMax's CEO, Bill Nash, expressed optimism about the results, crediting the company's omni-channel capabilities and customer-centric approach as key drivers for these achievements. "Our associates, stores, technology, and digital capabilities, all seamlessly integrated, enable us to provide the most customer-centric car buying and selling experience," he stated.
Looking ahead, CarMax plans to release its second quarter fiscal 2026 results on September 25, 2025. The company continues to lead innovation in the automotive retail industry, emphasizing integrity and transparency in its operations.
