CarMax, Inc. (NYSE: KMX) announced financial results for the third quarter ended November 30th, 2020. Net earnings for the third quarter rose 35.9% as net earnings per diluted share increased 36.5% from the prior year due to strong execution in a dynamic environment. Total wholesale units increased 10.8% driven by a record third quarter buy rate; wholesale gross profit per unit fell slightly to USD 906 despite sharp depreciation in the broader market. CarMax Auto Finance income increased 54.7% due to favorable loan loss performance, higher net interest margin and a rise in average managed receivables.
“We delivered strong EPS growth this quarter thanks to solid execution by our teams,” said Bill Nash, president and chief executive officer. “Despite the near-term market challenges due to the trajectory of the pandemic, our fundamentals remain robust and reflect the strength of our diversified business model spanning retail, wholesale, and auto finance. This strength, combined with our emerging omni-channel experience, is a unique advantage in the used car industry that firmly positions us to continue growing our market share while creating shareholder value over the long-term.”
Nash continued, “We have an incredible platform with unmatched scale and strength across buying, selling and inventory management. The foundation of our success remains providing a world-class experience for our customers, no matter how they interact with us. Our omni-channel capabilities give customers the flexibility to seamlessly connect and transact with us in more ways than ever. We are pleased with the increase in online engagement we are already seeing, and, with the further digital enhancements and offerings we are rolling out, we are creating a customer experience we believe will be unrivaled in the used car industry.”
The company repurchased 1.2 million shares of common stock for USD 109.2 Million due to its share repurchase program during the third quarter. As of November 30th, 2020 the company had USD 1.4 Billion remaining available for repurchase.