CarMax reported record results for the first quarter ended May 31, 2015. Total used vehicle unit sales grew 9.3% and comparable store used unit sales increased 4.9% versus the prior year’s Q1.
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Comparable store used unit sales benefited from a combination of factors, including improved conversion and continued growth in customer traffic.
Wholesale vehicle unit sales grew 4.7% versus the first quarter of fiscal 2015. Wholesale unit sales benefited from the growth of our store base, partially offset by a decline in our vehicle buy rate.
Other sales and revenues increased 14.3% year-over-year. Extended protection plan revenues rose 12.5% versus the prior year’s quarter, primarily due to the growth in our retail unit sales.
Total gross profit increased 8.4% versus the first quarter of fiscal 2015, to $543.8 million. Used vehicle gross profit rose 8.3%, primarily driven by the 9.3% increase in total used unit sales.
Used vehicle gross profit per unit was relatively flat at $2,200 compared with $2,220 in the prior year period. Wholesale vehicle gross profit increased 3.3% versus the prior year’s first quarter, driven by the 4.7% increase in wholesale unit sales.
Wholesale vehicle gross profit per unit of $1,032 was similar to the $1,046 reported in the first quarter of fiscal 2015. Other gross profit rose 18.7% largely due to the improvement in other sales and revenues.
Compared with the first quarter of fiscal 2015, SG&A expenses increased 11.6% to $349.8 million. The increase primarily reflected the 12% growth in our store base since the beginning of last year’s first quarter (representing the addition of 16 stores) and a $7.9 million increase in share-based compensation expense, as well as higher variable selling costs associated with our comparable store used unit sales growth.
SG&A per retail unit was $2,098 in the current quarter, up $51 year-over-year, of which $39 related to the increase in share-based compensation expense.
Compared with last year’s first quarter, CAF income increased 15.3% to $109.1 million. The improvement was driven by an increase in average managed receivables and continued favorable loss experience, partially offset by a lower total interest margin percentage. Average managed receivables grew 17.2% to $8.66 billion. ■