CarMax’s wholesale business boosts profits in the third quarter

  • CarMax’s fiscal third-quarter profit rose to $82 million, up from $37.6 million last year
  • Combined retail and wholesale unit sales rose by 1.3%
  • Average selling prices fell across both the retail and wholesale segments
  • Gross profit increased by more than 6%, driven by strength in the wholesale business
  • CarMax provisioned $68.3 million for loan losses, down from $85.7 million last year

CarMax, the Richmond-based used-car retailer, announced a higher profit of $82 million in its fiscal third quarter, compared to $37.6 million in the same period last year. The company experienced a 1.3% increase in combined retail and wholesale unit sales, although average selling prices declined in both segments. Gross profit rose by over 6%, driven by the strength of CarMax’s wholesale business. Additionally, CarMax provisioned $68.3 million for loan losses, reflecting the company’s tightened lending standards.

Public Companies: CarMax (KMX)
Private Companies:
Key People: Bill Nash (Chief Executive)

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Factuality Level: 8
Justification: The article provides specific financial figures and quotes from the Chief Executive, which adds credibility to the information. However, it does not provide any sources for the information or any analysis of the data, which could affect the overall factuality level.

Noise Level: 6
Justification: The article provides information on CarMax’s fiscal third-quarter profit, revenue, and sales performance. It also mentions the challenges in the used-car industry and the company’s efforts to improve. However, it lacks in-depth analysis, evidence, or actionable insights. The article stays on topic and does not dive into unrelated territories.

Financial Relevance: Yes
Financial Markets Impacted: CarMax’s financial performance and the used-car industry

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses CarMax’s fiscal third-quarter profit and its performance in the used-car industry. There is no mention of any extreme events or significant impacts on financial markets or companies.

Reported publicly: www.marketwatch.com