Used vehicle retailer CarMax Inc (NYSE:KMX) reported a second-quarter FY24 revenue decline of 13.2% year-on-year to $7.07 billion, beating the analyst consensus estimate of $7.03 billion.
The company sold 342,662 units through combined retail and wholesale channels, a decrease of 9% year-over-year.
KMX said vehicle affordability challenges continued to impact Q2 unit sales performance, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightening lending standards and prolonged low consumer confidence.
The company bought 292,000 vehicles from consumers and dealers, down 14.9% versus last year.
Gross profit was $696.8 million, down 5.5% year-over-year.
EPS of $0.75 missed the consensus estimate of $0.78.
Selling, general and administrative expenses decreased 12.1% year-over-year to $585.7 million.
KMX held cash and equivalents of $1.23 billion as of August 31, 2023.
During the second quarter of fiscal 2024, the company did not repurchase any shares of common stock. As of August 31, 2023, CarMax had $2.45 billion remaining available for repurchase under the outstanding authorization. The company intends to resume share repurchases in the third quarter of this year.
Price Action: KMX shares are trading lower by 11.5% at $70.50 in premarket on Thursday.
