CarMax Reports Q2 2027 Earnings with Strong Revenue Growth and Profit Expansion
CarMax (KMX) reported strong financial results for the second quarter of fiscal year 2027, driven by increased retail used unit sales and higher average selling prices. Total net revenues reached $7.9 billion, a 19.5% increase from the prior-year period. Net earnings per diluted share rose to $1.16, up 81%, supported by improved operational efficiency and SG&A leverage. The company saw significant growth in both retail and wholesale unit sales, with comparable store used unit sales rising 13%. However, gross profit per unit declined slightly due to strategic pricing decisions aimed at boosting volume. CarMax Auto Finance income increased by 32.1%, largely from a reduction in the loan loss provision. Despite these gains, management warned of potential near-term variability in auto finance income and noncash charges related to pension plan termination. The company also announced plans for modest share repurchases as it continues its strategic initiatives.
Tickers: $KMX
Topics: Automotive Retail Financial Performance Used Car Sales