CarMax reports strong Q2 earnings and revenue growth

CarMax, Inc. reported strong second-quarter fiscal 2027 results, signaling progress in its ongoing turnaround strategy led by CEO Keith Barr. The company reported total net revenues of $7.9 billion, a 19.5% increase compared to the previous year. Net earnings per diluted share rose 81.3% to $1.16, significantly exceeding analyst expectations of $0.73.

The retailer saw a rebound in sales performance, with combined retail and wholesale unit sales increasing by 14.7% to 387,735 units. Notably, comparable store used unit sales grew by 13%, marking a recovery after four consecutive quarters of declines. Gross profit from used vehicle sales also grew for the first time in five quarters.

In response to these results, CarMax announced plans to resume share repurchases at a modest level during the third fiscal quarter. The company also intends to host a virtual strategic update on November 3 to provide further details on its growth initiatives and long-term milestones.