We are managing our business prudently, and prioritizing initiatives that reduce costs, unlock operating efficiencies, profitably grow market share and create better experiences for our associates and customers,” said Bill Nash, president and chief executive officer. “In response to the ongoing pressures across the used car industry, we have taken deliberate steps to support our business for both the near-term and the long-term. Net earnings per diluted share of $0.24, down from $1.63 a year ago. Took deliberate actions in response to the current market conditions by reducing SG&A, increasing the mix of older retail vehicles sold, increasing CAF rates, reducing planned capital expenditures, and prudently managing our capital structure, including pausing share buybacks. Adjusting for that settlement, SG&A expenses would have declined 1.1% year-over-year. In the prior year’s third quarter, we received a $22.6 million settlement from a class action lawsuit. SG&A of $591.7 million increased 2.7% or $15.8 million from last year’s third quarter. Both volume and margins were impacted by steep market depreciation as well as retail selectivity.īought 238,000 vehicles from consumers and dealers, down 39.8% versus last year’s record third quarter, due to steep market depreciation and our response to deliberately slow buys.ĬarMax Auto Finance (CAF) income of $152.2 million, down 8.3% from the prior year third quarter due to compression in the net interest margin percentage and a higher provision for loan losses, primarily driven by the expansion of Tier 2 and Tier 3 originations within CAF’s portfolio, partially offset by an increase in average managed receivables.Ĭompleted the nationwide rollout of our industry-leading, multi-lender pre-qualification finance experience. Total wholesale units sold decreased 36.7% despite a decrease of $165 per unit from the record prior year third quarter, wholesale gross profit per unit remained strong at $966. Total retail used units sold decreased 20.8%, while used unit sales in comparable stores were down 22.4% strength in margin management delivered solid gross profit per retail used unit of $2,237, in line with the prior year third quarter. Net revenues of $6.5 billion, down 23.7% compared with the prior year third quarter. (NYSE:KMX) today reported results for the third quarter ended November 30, 2022. RICHMOND, Va.,-( BUSINESS WIRE)-CarMax, Inc.
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