Celeste has been an integral part of our IR program for almost 20 years, and I'm sure you will all agree, she'll be deeply missed.
Net earnings up 27% to $297 million and earnings per share up 27.9% to $1.79.
For the second quarter, we achieved a 3.9% increase in total used units sold and the used unit comp growth of 1.2%.
In June, we experienced a high single-digit negative used unit comp which was more than offset by positive comps in both July and August.
The improvement in sales was the result of a variety of factors, including solid execution in operations, finance and marketing in addition to a strengthening used car sales environment.
In the quarter, we saw solid growth in web traffic, averaging approximately 29 million visits per month to carmax.com.
For the past three months, our teams have done a phenomenal job buying and producing vehicles at record levels, increasing salable inventory by more than 50% in the quarter.
Today, I'm pleased to report that we've successfully ramped inventory to targeted levels, providing customers with more than 55,000 vehicles nationwide, the largest of any used car retailer.
This quarter, we saw five to 10-year-old vehicles increased to 27% compared with 22% last year as a percentage of our sales mix, reflecting customer demand for older and less expensive vehicles.
Gross profit per used unit for the quarter was $2,214 up $31 per unit from a year ago.
Volume was up 5.1%, driven by one more auction date in the quarter and a record buy rate.
We also achieved record gross profit per wholesale unit of $1,086 in the quarter, the result of strong appreciation and operational execution.
For the quarter, other gross profit increased $6.8 million or 5.8%.
EPP profits grew by $6.1 million or 5.4%, largely due to the increase in used units sold.
In the quarter, we also recognized $8.2 million in extended service plan profit sharing revenues compared with $6.5 million recognized a year ago.
In the second quarter, we maintained our ESP penetration above 60% compared with the prior-year quarter.
Service profits increased $4.5 million or 31%, which benefited primarily from the improved sales growth and the employee retention tax credit from the CARES Act.
The increase in EPP and service profits were partially offset by a $5 million increase in net third-party finance fees attributable to a shift in our sales mix by finance channel.
On the SG&A front, expenses increased 2% to approximately $9 million to $490 million.
SG&A per used unit was $2,256, a year-over-year leverage of $44 per unit on the quarter.
Excluding the impact of stock-based compensation, SG&A leverage was $97 a unit.
Notable SG&A expense drivers for the second quarter were: the opening of 14 stores since the beginning of the second quarter of last year, which represents a 7% growth in our store base; a $12 million or $53 per unit increase in share-based compensation expense; a 7.7% increase in advertising expense and continued spending to advance our technology platforms and support our core and omnichannel strategic initiatives.
First, we are ready to resume store growth and are currently planning for eight to 10 new stores in FY '22.
Finally, we ended the quarter modestly below our historical leverage target of 35% to 45% adjusted debt-to-capital when netting out cash.
As we previously discussed, CAF made some temporary underwriting adjustments early in the pandemic, with the goal of ensuring financeable Tier 1 portfolio.
Consequently, in the back half of the quarter, we began originating our normal spectrum of Tier 1 business.
CAF also curtailed its in-house Tier 3 lending at the start of the pandemic.
Based on the trends I just mentioned, we have reengaged in the Tier 3 space in recent weeks.
Cash penetration was 42.6% compared with 42.2% a year ago.
Tier 2 accounted for 22.3% of used unit sales compared with 19.7% last year.
And Tier 3 was up to 11.1% compared with 9.6% a year ago.
Year over year, cash net loans originated grew by 1% to $1.8 billion as the increases in used cars sold and penetration rate were somewhat offset by a lower average amount finance.
For loans originated during the quarter, the weighted average contract rate charged to customers was 8.2%, down from 8.6% a year ago and 8.4% in the first quarter.
Portfolio interest margin as a percent of average managed receivables increased to 6% versus 5.7% in Q2 last year.
Combined with our growth in receivables, this drove an increase in total interest margin of 7.4%, independent of any favorability in the provision for loan losses.
Total CAF income for the quarter was up 29% to $147.2 million.
The provision for loan losses was $26 million in Q2, which results in an ending reserve balance of $433 million.
That's 3.2% of average managed receivables, which is moderately lower than at the end of Q1.
Customers don't want to be forced to interact 100% in-store or 100% online.
By the end of this year, we will have rolled out approximately 95% of our photo studios, which provide a more immersive experience with high-quality photos, 360-degree interior and exterior views, feature scoring hotspots and reconditioning with new part call outs.
Approximately 70% of our customers interacted with our CECs this quarter.
Additionally, approximately 50% of our customers progressed their sale remotely, up from about 42% pre-COVID.
Most of these customers still chose to come to the store to complete their transaction, and approximately 30% of our customers still opted for an in-store experience only.

Summary:
Net earnings up 27% to $297 million and earnings per share up 27.9% to $1.79.
For the second quarter, we achieved a 3.9% increase in total used units sold and the used unit comp growth of 1.2%.
In June, we experienced a high single-digit negative used unit comp which was more than offset by positive comps in both July and August.
The improvement in sales was the result of a variety of factors, including solid execution in operations, finance and marketing in addition to a strengthening used car sales environment.
Volume was up 5.1%, driven by one more auction date in the quarter and a record buy rate.
First, we are ready to resume store growth and are currently planning for eight to 10 new stores in FY '22.
Based on the trends I just mentioned, we have reengaged in the Tier 3 space in recent weeks.