CarMax is accepting lower gross profit per retail used vehicle as a short-term tactic to offer more competitive prices and lift sales, new CEO Keith Barr said while reporting first-quarter fiscal 2027 results. Net revenues rose 6.2% year-over-year to $8.0 billion, and combined retail and wholesale unit sales increased 3.3% to 392,357. Average gross profit per retail used vehicle fell nearly 10% to $2,177, though the year-ago quarter was an all-time record driven by tariff fears. Barr stressed that thinner margins are a temporary measure, with the company aiming to self-fund competitive pricing through efficiency gains over the medium to long term. He outlined a four-pillar strategy focused on great offering, customer experience, added value, and running lean, including plans to cut costs by an annual rate of $200 million in fiscal 2027.
CarMax IncCarMax is accepting lower gross profit per retail used vehicle, with average gross profit per retail used vehicle falling nearly 10% to $2,177.