Total used vehicle unit sales grew 9.2% and comparable store used unit sales increased 4.6% over the prior year’s second quarter. Comparable store used unit sales were driven by improved conversion, which benefited from the strong execution of store teams.
During the fiscal second quarter, the company opened four stores, including three stores in existing markets and one in a new market. Subsequent to the end of the quarter, CarMax opened its sixth store in Houston and second store in Minneapolis. Currently, the company plans to open about eight new locations.
At the same time, CarMax repurchased 3.9 million shares of common stock for $249.8 million pursuant to its share repurchase program. At the end of August, it had $2.0 billion remaining available for repurchase under the program.
Tom Folliard, president and CEO of CarMax, commented on earnings:
We are pleased to report record second quarter results. The continued expansion of our store base and growth across our used, wholesale and CAF operations, as well as our share repurchase program, all contributed to our record second quarter earnings per share.
On the books, the company had cash and cash equivalents totaling $100.5 million, compared to $364.6 million at the same time in the previous year.
Shares of CarMax dropped more than 9% to $56.84 just after Tuesday’s opening bell. Its 52-week trading range is $43.27 to $75.40, and the consensus analyst price target is $75.27.
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