CarMax Q2 Earnings Miss Expectations, Revenues Decline Y/Y

CarMax Inc. KMX reported second-quarter fiscal 2026 (ended Aug. 31, 2025) adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of $1.03. The bottom line fell from 85 cents per share recorded in the year-ago period. The auto retailer registered revenues of $6.6 billion in the quarter under review, which lagged the Zacks Consensus Estimate of $7.1 billion. The top line also fell 6% year over year.

CarMax, Inc. Price, Consensus and EPS Surprise

CarMax, Inc. price-consensus-eps-surprise-chart | CarMax, Inc. Quote

Segmental Performance

CarMax’s used-vehicle net sales totaled $5.27 billion for the reported quarter, down 7.2% year over year due to a decline in unit sales. The units sold in this segment fell 5.4% year over year to 199,729 vehicles and fell short of our forecast of 218,574 units. The average selling price (ASP) of used vehicles decreased 1% from the year-ago quarter to $25,993, which lagged our projection of $26,335. Amid lower-than-expected units sold, revenues from the segment missed our estimate of $5.76 billion. 

Comparable store used-vehicle units decreased 6.3% and revenues fell 7.1% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,216, which fell from the prior-year quarter’s $2,269 but lagged our estimate of $2,223.4. 

For the fiscal second quarter, wholesale vehicle revenues decreased 0.4% from the year-ago level to $1.15 billion. The reported figure was below our projection of $1.1 million due to lower-than-anticipated unit sales. Units sold fell 2.2% to 138,302 (versus our forecast of 145,914) and the ASP rose 1.6% year over year to $7,891 (versus our estimate of $7,553). Wholesale vehicle GPU came in at $993, which fell from the year-ago period’s $1,021 but topped our estimate of $887.7. 

Other sales and revenues decreased 4.2% year over year to $174.4 million but missed our estimate of $192.1 million. CarMax Auto Finance’s income fell 11.2% year over year to $102.6 million at the end of the fiscal second quarter.

Other Tidbits

Selling, general and administrative expenses decreased 1.6% from the prior-year quarter to $601.1 million. The firm had cash/cash equivalents and long-term debt of $540.4 million and $1.37 billion, respectively, as of Aug. 31, 2025. 

During the fiscal second quarter, CarMax repurchased shares worth $180 million. As of Aug. 31, 2025, it had $1.56 billion remaining under the share repurchase authorization.

Earnings Releases of Other Auto Stocks

THOR Industries, Inc. THO reported its fourth quarter of fiscal 2025 (ended July 31) results on Sept. 24. It posted earnings of $2.31 per share for the quarter, beating the Zacks Consensus Estimate of earnings of $1.16. The company reported earnings of $1.68 per share in the corresponding quarter of fiscal 2024.

THOR registered revenues of $2.52 billion for the fiscal fourth quarter, beating the Zacks Consensus Estimate of $2.31 billion. The top line fell 0.4% year over year.

AutoZone Inc. AZO reported fourth-quarter fiscal 2025 (ended Aug. 30, 2025) results on Sept. 23. It reported earnings of $48.71 per share, which missed the Zacks Consensus Estimate of $50.52. The company had reported earnings of $48.11 per share in the corresponding quarter of fiscal 2024. Net sales grew 0.6% year over year to $6.24 billion and topped the Zacks Consensus Estimate of $6.22 billion.

Advance Auto Parts AAP reported second-quarter 2025 results on Aug. 14. It reported adjusted earnings of 69 cents per share for the second quarter of 2025, beating the Zacks Consensus Estimate of 59 cents. The company reported adjusted earnings of 75 cents per share in the year-ago quarter. Advance Auto generated net revenues of $2.01 billion, which beat the Zacks Consensus Estimate of $1.98 billion. Comparable store sales increased 0.1% year over year. We expected a rise of 0.2% for the same. The top line decreased from $2.68 billion generated in the year-ago quarter.

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