CarMax Sales Set Quarterly Record, Buybacks Blow Away Previous High

Used car retailer CarMax, Inc.’s retail and wholesale sales shot up almost 30% in the third quarter of fiscal 2022, largely because of increased consumer demand for buying their vehicles online as well as improved inventory and staffing levels and better vehicle sources from consumers.

The positive report sent shares of CarMax stock up almost 5% in early trading on Wednesday (Dec. 22).

The company sold 415,054 vehicles in the three months ending Nov. 30, including 227,424 used cars, up 16.9%. Comparable store used sales were up 15.8%. CarMax’s wholesale sales were up 48.5% to 187,630, setting a third-quarter record for the company.

CarMax became more active in buying cars in its most recent quarter, securing 383,215 vehicles in the last three months, up 91% from the same time a year earlier. About 194,000 of the cars came through the company’s online instant appraisal service. Meanwhile, CarMax set a record for net revenues with $8.5 billion, up 64.5% from the same time a year earlier.

“Our solid execution, customer-centric omnichannel strategy and macro factors are driving strong performance across our diversified businesses,” said Bill Nash, president and chief executive officer, in the company announcement. “Our top-line momentum continued into this quarter, and we achieved record levels of third-quarter unit sales in both retail and wholesale, generating all-time record revenues. We also bought more cars from customers than ever before. We are excited about the opportunities ahead of us and believe that by delivering the most customer-centric experience in the industry, we will enable sustainable growth and create meaningful long-term shareholder value,” Nash added.

Related news: CarMax Struggles to Build Inventory as Vehicle Shortage Continues

In its second-quarter earnings report, CarMax said its inventory was about 30% lower than expected and down 15% year over year as a result of the ongoing effects of the COVID-19 pandemic. The company wasn’t able to build up its inventory earlier this year because of disrupted new vehicle production and record sales in the spring.