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CarMax’s Earnings Surge 81% — Is Its $200 Million Turnaround Just Getting Started?

CarMax’s fiscal second quarter of 2027 demonstrated growth across multiple operational and financial metrics, reflecting the initial positive impact of its Shift into GEAR strategy centered on customer experience, pricing competitiveness, profitability enhancements, and operational efficiency. The company reported total sales of $7.9 billion, a 19% increase year-over-year, with approximately 388,000 vehicles sold—a 15% rise driven by a 13% growth in used unit comparable sales and a 14% increase in total used unit sales. Improvements in price competitiveness, driven by enhanced pricing algorithms and cost efficiencies in reconditioning, enabled CarMax to offer vehicles at sharper prices while maintaining sales momentum amid a resilient consumer backdrop. Earnings per share rose substantially by 81% to $1.16, underpinned by robust unit growth, expanded gross profit contributions particularly from extended protection plans (EPP) and CarMax Auto Finance (CAF), and disciplined selling, general and administrative (SG&A) expense management. SG&A expenses increased modestly by 4.