From Alphastreet - Earnings Decoded. Market Intelligence Delivered · Newsdesk · · 1m
CarMax's Used Car Margin Test
CarMax's used car recovery shows margin resilience despite retail unit slowdowns
In brief
CarMax's used car recovery shows margin resilience despite retail unit slowdowns Retail gross profit per unit dropped $230 as CarMax fights for demand with pricing actions Originally reported by Alphastreet - Earnings Decoded. Market Intelligence Delivered.
Q1 2027 Results
CarMax reported $8.0 billion net revenue, up 6.2% from prior-year quarter
Retail Units Flat
Retail used vehicle sales nearly flat at 230,293 units, down 0.8% in comparable stores
Wholesale Growth
Wholesale used vehicle sales rose 8.4% to 162,064 units, offsetting retail weakness
Retail Margin Drop
Retail gross profit per unit fell $230 to $2,177, reflecting pricing actions to support demand
Wholesale Margin Up
Wholesale gross profit per unit rose 8.3% to $1,046, maintaining steady performance
Auto Finance Impact
CarMax Auto Finance financed 43.3% of units sold, with interest margins up 20 basis points
Credit Watch
Allowance for loan losses rose to 2.95% of auto loans held for investment
The main idea
Retail gross profit per unit dropped $230 as CarMax fights for demand with pricing actions
