CarMax reported strong results that exceeded expectations, driven by high sales volume and inventory clearance, though at the cost of lower profit margins.

Well, the situation is different for CarMax. while CarMax, in contrast, presented a very good report based on lower prices. They sacrificed some profit margins, but nevertheless, they significantly exceeded expectations, especially in terms of sales volume.

Looking at the quarter's revenue, we find it to be around $7.8 billion , exceeding expectations of $7.08 billion. That is, it exceeded expectations by about $800 million , an increase of 19.5% year-on-year compared to last year.

Then the earnings per share were remarkable, reaching $1.16 compared to expectations of around $0.72 . This represents an increase of 81%. So, if we look at the growth of the assembled units, which is important, they recorded more than 387,000 units, an increase of 14.7%.

Looking at the growth of units sold in existing stores, it has grown by 13%. Therefore, the real challenge for this quarter was sacrificing gross retail profit margins due to the disposal of inventory at lower prices.

If we look at the gross retail profit per vehicle, we find that it amounts to approximately US$2,105. This represents a decrease of approximately US$111 compared to last year's figure.

But what's most important, in my opinion, is the sales figure in existing stores, which increased by 13%.

Therefore, the company's strategy was centered around clearing inventory and reducing operating expenses. This, of course, helps offset some of the decline in car profit margins .

However, they also talked about increased share buybacks, and overall, it was a very good report for Carmax, which has begun to recover significantly from its lows in May.