US-based used vehicle retailer CarMax has reported a 6.9% decline in net revenues of $29.7bn for fiscal year (FY) 2023, compared to $31.9bn in FY22.

Net earnings per diluted share went down by 56.5% to $3.03% in FY23.

In the fourth quarter (Q4) of FY23, the retailer recorded net revenues of $5.7bn, which is 25.6% less than the $7.6bn net revenues registered in Q4 FY22.

The Q4 of this year, which ended on 28 February 2023, saw a 15.5% decline in the combined retail and wholesale unit sales from that of the previous year’s Q4.

The company’s retail used unit sales also dropped by 12.6% to 169,884, while the comparable store used unit sales went down by 14.1% from Q4 of FY22.

CarMax’s wholesale units also declined by 19.3% in Q4 FY23.

The company has attributed this to “vehicle affordability challenges” that affected the Q4 unit sales performance.

CarMax says that other reasons for this decline are low consumer confidence, widespread inflationary pressures, rising interest rates and tightening of lending standards.

Meanwhile, total gross profit stood at $611m, which is 14.1% less than the previous year’s Q4.

CarMax has also opened five new retail stores in the Q4 of FY23. These stores are located in Chicago, Illinois; Asheville, North Carolina and Indianapolis, Indiana; as well as College Station and Amarillo in Texas.

CarMax CEO and president Bill Nash said: “During FY2023, we made significant progress to further improve the most customer-centric omnichannel experience in the industry, including enabling online self-progression for all of our retail customers and completing the nationwide rollout of our finance prequalification product.

“We also enhanced our wholesale shopping experience by launching a modernised, mobile-friendly vehicle detail page. We are confident that we are well positioned to continue leading the used car industry and to accelerate growth when the market improves.”

The company’s share of the countrywide zero to ten-year-old used vehicle market in the calendar year 2022 continued to be at 4.0%.