CarMax reported first-quarter fiscal 2027 net revenues of $8.01 billion, a 6.2% year-over-year increase that exceeded expectations, while total units rose 3.3% to 392,357. Earnings per share declined to $1.31 from $1.38 as gross profit fell 4.4%, with retail gross profit per used unit dropping $230 to $2,177 due to intentional pricing investments. The company raised average selling prices to $27,288 and reduced SG&A by 3.7%, targeting $200 million in exit-rate savings by fiscal 2027. New CEO Keith Barr introduced a four-pillar strategy and added a $500 million term loan while pausing buybacks. CarMax Auto Finance income was $140.2 million and credit losses improved.
CarMax IncRevenue beat and SG&A savings are positive, but EPS decline and paused buybacks are negative.
Carvana CoCarMax's market share focus and pricing investments pressure Carvana's competitive position.
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