CarMax rebounded in multiple operational and performance ways during the second quarter of its 2027 fiscal year; a span that also included a workforce reduction of almost 150 employees.

The used-car retailer on Tuesday also promoted an executive and announced the hiring of another one previously with a captive finance company to go with plans to host a “virtual strategic update” when CarMax said it will provide details on its “strategy for growth, key initiatives and milestones.”

Before that virtual session unfolds on Nov. 3, CarMax president and chief executive officer Keith Barr evaluated the Q2 financial statement, saying through a news release, “Our strong second quarter results reflect solid execution and early progress against Shift into GEAR, our four-pillar strategy to strengthen CarMax’s core business and return the company to sustained growth.

“We have a clear strategy, a solid foundation, and an exceptional team accelerating our progress to create long-term value for our shareholders,” continued Barr, who took over as the CarMax boss on March 16.

CarMax reiterated what Shift into GEAR entails, including:

  1. Great offering: Give customers every reason to choose CarMax

“Price competitively across demand cycles while growing saleable inventory and providing customers faster access to our vehicles.”

  1. Easy experience: Make it easy to do business with us, both online and in stores.

“Better connect digital capabilities with in-store experiences to improve conversion and customer satisfaction.”

  1. Add value: Grow profitability by maximizing value across all aspects of its business

“Grow long-term profitability across our (CarMax Auto Finance) and (Extended Protection Plan) businesses.”

  1. Run lean: Unlock efficiencies to enable a great offering

“Lower reconditioning costs through technology and operational efficiency while continuing to deliver the high-quality vehicles customers expect from CarMax, enhance our logistics network, and continue to reduce SG&A.”

Perhaps that last pillar is what created the recent workforce reduction, which CarMax said in a separate statement that the moves involved approximately 145 associates in Richmond, Va., Dallas and Atlanta and in the CarMax Auto Finance and Edmunds divisions.

“These changes will help us move faster and create better alignment across teams. By running leaner as an organization, we are positioning CarMax to be more competitive, drive sustainable growth, and provide even more value for our customers,” the company said in that statement sent to Auto Remarketing.

“Our primary focus is supporting our associates throughout this transition,” CarMax continued. “We’re grateful for their contributions to CarMax and are committed to supporting them as they take their next step. We are providing resources to the associates who are impacted, including providing severance, outplacement support, and the opportunity to apply for open internal roles.

“We have approximately 70 open corporate roles, as well as many more open field roles, and are working with interested impacted associates to find opportunities to stay with CarMax,” the company went on to say.

Overall Q2 results

While layoffs certainly are negative, CarMax had plenty of positives to highlight from the second quarter, including:

—Total net revenues rose 19.5% to $7.9 billion.

—Combined retail and wholesale unit sales of 387,735, an increase of 14.7%.

—Retail used unit sales increased 13.8% and comparable store used unit sales increased 13.0%; gross profit per retail used unit of $2,105 declined by $111, reflecting the continuation of pricing actions implemented to support an improved sales trend.

—Wholesale units increased 15.9%; gross profit per wholesale unit of $858, a decrease of $135.

—Extended Protection Plans (EPP) margin per retail unit of $623, an increase of $46 per unit.

—Bought 310,107 vehicles from consumers and dealers, an increase of 5.9%.

—SG&A expenses increased 4.6% to $628.6 million, while leveraging robustly by $157, or 8.8%, per total unit. Ongoing cost reduction efforts were offset as we annualized over materially reduced incentive-based compensation and by variable costs tied to strong unit growth.

—CarMax Auto Finance (CAF) income increased 32.1% to $135.6 million.

“Our customer promise is to deliver a great car at the right price, with an online and in-store experience that our customers love.  All of the steps we have been taking are in service of that promise and to create confidence for the road ahead for our associates, customers and investors,” Barr said.

“We are encouraged by our performance this quarter and the progress we are making across the business. While we are still early in our journey, the results we are seeing reinforce our confidence in our strategy and the opportunity ahead,” he added.

“We are steadfast in our focus on delivering the right cars at the right price, making it easier for customers to do business with us, capturing more value from each transaction and operating more efficiently at scale,” Barr went on to say.

Executive moves

Being a part of CarMax on that journey are two professionals in new executive positions.

The company named Elizabeth Dirgins as executive vice president and chief digital and customer officer, a newly created role that will further unify the end-to-end customer experience, from customer acquisition through vehicle transaction.

In this capacity, CarMax said Dirgins will oversee the company’s marketing, product and Edmunds teams, including the digital tools that support both online and in-store experiences.

With more than two decades of digital product and customer experience leadership, Dirgins will join CarMax from Volkswagen Financial Services, where she served as the chief digital officer for its North American region and led digital strategy, customer experience and marketing for the business.

Dirgins previously held customer experience and product strategy leadership roles at Capital One, Wells Fargo, and Marriott. She will join CarMax on Oct. 5 and report to Barr.

“CarMax has built real trust with customers over decades, and I’m excited to continue to grow this beloved brand,” Dirgins said in a news release. “CarMax gives customers the ease of shopping online with the confidence that comes from seeing and confirming their choice in person. My focus will be making sure that we make every step in the customer’s car buying and selling journey simple, fast and connected.”

CarMax also announced the promotion of Jeff Campbell to senior vice president of strategy, leading a newly centralized function that brings together the company’s strategy, data science, AI, and pricing teams in order to accelerate key decisions.

Campbell joined CarMax in 2016 and has held leadership roles spanning transformation, product and strategy. He most recently served as vice president of product, leading the supply product group and the supply strategy function, while also playing an instrumental role in the development of CarMax’s new strategic plan.

Campbell came to CarMax from Boston Consulting Group. While his appointment was effective in August, CarMax said Campbell will report to Barr beginning in January.

“We have a strong strategic plan for growth and incredible runway ahead,” Campbell said in the news release. “I’m excited about my new role and am grateful for the incredible associates I get to work with in this next chapter. Bringing our strategy, data and pricing teams together will give us a clearer, shared view of the business, which will enhance our decision making.”

Barr elaborated about what this personnel changes mean.

“Elizabeth and Jeff both bring the skills, experience and focus we need as we build a faster, more connected company that puts the customer at the center of everything we do,” Barr said Keith.

“Elizabeth has spent her career building digital experiences and financial products grounded in deep customer understanding, and she’ll bring an invaluable perspective to guiding customers through this carefully considered, complex purchase,” Barr continued. “Jeff has been instrumental in shaping our strategy over the last decade, and in his new role he will support the delivery of our strategic plan with the speed and alignment it demands.

“I know they’ll both create confidence for the road ahead for every customer we serve,” Barr went on to say.