How Badly Did COVID-19 Crash CarMax's Q1?

The broader automotive industry was hard hit during the spread of COVID-19 as manufacturers halted production, suppliers scrambled to adjust, dealerships turned into ghost towns, and sales dropped off a cliff. CarMax (NYSE: KMX), the nation's largest retailer of used cars, just reported its first-quarter results ended on May 31, 2020. These results can offer investors valuable insight into just how devastating the pandemic was to business, and whether or not trends are improving.

Roughly 80% of days in CarMax's first quarter were negatively affected by store closures and limited operations and capacity, due to COVID-19. Net sales and operating revenues plunged 40% to $3.23 billion, still topping analysts' estimates of $2.7 billion. CarMax's first-quarter net earnings dropped a staggering amount from the prior year's $1.59 per share, down to $0.03 per share. Comparable-store used unit sales declined 42% during the first quarter, but sales have improved consistently since early April. In fact, comparable store used unit sales for the two weeks ended June 14, 2020 were within 10% of prior year levels.

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Source Fool.com