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CarMax Drops on Q2 Earnings Miss; Revenue Jumps

CarMax reported fiscal-second-quarter revenue rose nearly 50% year over year.

Shares of CarMax  (KMX) - Get CarMax, Inc. Report fell on Thursday after the used-car retailer reported fiscal-second-quarter earnings that missed analyst expectations. 

For the quarter ended Aug. 31 the Richmond, Va., company reported earnings of $1.72 a share on revenue of $7.99 billion. Analysts surveyed by FactSet were expecting the company to report earnings of $1.88 a share on revenue of $6.91 billion. 

The company's omnichannel platform gives customers "the ability to progress to a sale or buy regardless of how they shop with us," Chief Executive Bill Nash said in a statement. 

At last check CarMax shares were down 8.6% to $133.84. 

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CarMax revenue for the quarter rose 49% year over year after it sold 419,895 vehicles through its retail and wholesale channels. That sales number was up nearly 20% year over year. 

The used car company bought 364,263 vehicles in the quarter, a 59% increase over a year earlier. 

Gross profit per retail used unit was $2,185, which was in line with historical levels and down slightly from a year earlier. 

CarMax remains "on track to bring our fully self-service online experience to all of our retail consumers by the end of the fiscal year," Nash said.