Q1 2026 Carmax Inc Earnings Call Transcript
Key Points
- CarMax Inc (KMX) achieved a 42% growth in earnings per share, marking the fourth consecutive quarter of positive retail unit comps and double-digit EPS growth.
- The company reported total sales of $7.5 billion, a 6% increase from the previous year, driven by higher volume despite lower prices.
- Retail gross profit per used unit reached an all-time high, supported by strong demand and operational efficiencies in logistics and reconditioning.
- CarMax Inc (KMX) successfully leveraged SG&A expenses, achieving a 680 basis point improvement as a percentage of gross profit.
- The company doubled its share repurchase pace, buying back approximately 3 million shares for $200 million, with $1.74 billion of repurchase authorization remaining.
- CarMax Auto Finance's sales penetration decreased by 150 basis points year-over-year, primarily due to an influx of self-funded higher credit purchasers.
- The average retail selling price decreased by approximately $400 per unit year-over-year, reflecting pricing pressures.
- Wholesale gross profit per unit, while historically strong, was slightly down from the previous year.
- The loan loss provision increased to $102 million, influenced by higher sales and lower credit quality, as well as uncertain economic outlooks.
- The company's digital sales, while significant, saw a slight decline in the percentage of total sales compared to the previous quarter.
Ladies and gentlemen, thank you for standing by. Welcome to the first-quarter fiscal year 2026 CarMax earnings release conference call. (Operator Instructions). Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, David Lowenstein, Vice President, Investor Relations. Please go ahead.
Thank you, Nikki. Good morning, everyone, and thank you for joining our fiscal 2026 first quarter earnings conference call. I'm here today with Bill Nash, our President and CEO; and Enrique Mayor-Mora, our Executive Vice President and CFO; and Jon Daniels, our Executive Vice President, CarMax Auto Finance.
Let me remind you our statements today that are not statements of historical fact including, but not limited to, statements regarding the company's future business plans, prospects and financial performance are forward-looking statements we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
