CarMax (KMX) Q2 2024 Earnings Call Transcript Summary
Here are the specific viewpoints from earnings call:
Bullish Points:
1. Sequential quarterly improvement across the business
2. Strong retail GPU
3. Reduced SG&A year over year
4. Maintained used sellable inventory units at a similar level to the first quarter
5. Total inventory dollars decreased by 18% year over year
6. Strong wholesale GPU despite steep depreciation
7. Stabilized CAF's net interest margins while maintaining penetration
8. Comp sales improved sequentially by month across the second quarter
9. Retail gross profit per used unit was $2,251, similar to last year's second quarter record high of $2,282
10. Wholesale gross profit per unit was $963, up from $881 a year ago
Bearish Points:
1. Total sales of $7.1 billion, down 13% compared to last year
2. Lower retail and wholesale volume and prices
3. Retail unit sales declined 7.4% and used unit comps were down 9%
4. Average selling price declined approximately $1,200 per unit or 4% year over year
5. Wholesale unit sales were down 11.2% versus the second quarter last year
6. Average selling price declined approximately $1,300 per unit or 12% year over year
7. CarMax Auto Finance income of $135 million, down from $183 million during the same period last year
8. Slight reduction in the reserve to receivables rate
9. Affordability issue causing customers to stay on the sidelines and elongate trade-in cycles
10. Uncertainty regarding the precise impact of UAW strikes on vehicle supply, pricing, and parts
For more information about CarMax(KMX)'s earnings call, you can read the relevant news: [CarMax (KMX) Q2 2024 Earnings Call Transcript](https://www.fool.com/earnings/call-transcripts/2023/10/04/carmax-kmx-q2-2024-earnings-call-transcript/)
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