10:21 AM EDT, 06/20/2025 (MT Newswires) -- CarMax ( KMX ) reported better-than-expected fiscal first-quarter results on Friday amid higher sales for used vehicles despite lower prices.

The used-vehicle retailer posted earnings of $1.38 a share for the quarter ended May 31, up from $0.97 the year before, higher than the FactSet-polled consensus of $1.16. Sales and operating revenue improved 6.1% to $7.55 billion, just ahead of the Street's view for $7.5 billion. The stock rose 2.2% in Friday trade.

"We delivered our fourth consecutive quarter of positive retail comps and double-digit year-over-year earnings per share growth," Chief Executive Bill Nash said in a statement. "These results highlight the strength of our earnings growth model."

Revenue from retail used-vehicle sales totaled $6.1 billion, up from $5.68 billion in the prior-year quarter, even though prices were down 1.5%. Comparable-store sales in the retail unit advanced 8.1%, more than the 6.1% increase modeled by analysts. Wholesale revenue edged down 0.3% to $1.25 billion due to lower prices.

Retail used unit sales advanced 9% to 230,210 vehicles, while wholesale volume moved 1.2% higher to 149,517 vehicles. CarMax ( KMX ) bought 336,000 vehicles in the first quarter, up 7.2% from a year ago. It bought 288,000 vehicles from customers and 48,000 from dealers.

In an emailed client note, Truist Securities said CarMax ( KMX ) had a "solid" quarter but the brokerage continues to believe the company will face competitive challenges. Truist expects tariffs on new vehicles to "feed into price increases in the late-model used space as well."

After announcing sweeping new tariffs in early April, US President Donald Trump declared a 90-day pause on certain duties for non-retaliating countries. Earlier this week, the US agreed to a trade deal with the UK that formally lowered some tariffs on British imports. Last week, US and Chinese officials reached a preliminary framework for implementing the trade deal the two countries reached in Switzerland in May.

In April, CarMax ( KMX ) suspended the timeframes related to its long-term objectives due to macro uncertainties.

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