Overview
- CarMax delivered Q1 earnings of $1.38 per share, surpassing consensus estimates of $1.21 on sales of $7.55 billion versus the $7.47 billion forecast.
- Retail used unit sales climbed 9.0% year-over-year with comparable store sales up 8.1% and wholesale unit sales rising 1.2%.
- The company repurchased $200 million of shares in the quarter and retains $1.74 billion in remaining buyback authorization.
- Operating margin contracted to –0.8% and net income margin stood at 1.9% as higher loan loss provisions drove a 3.6% decline in CAF income.
- Analysts warn that tariff headwinds and CarMax’s moderate valuation could temper the sustainability of its recent growth momentum.