CarMax Inc

KMX

Equity

ISIN US1431301027 / Valor 1484907

New York Stock Exchange, Inc (2024-12-24)

USD 84.91+1.45%

CarMax Inc
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About company

CarMax Inc. is the largest retailer of used cars in the United States, known for its innovative approach to the car buying and selling process. The company revolutionized the automotive industry with its "no-haggle" pricing model, aiming to make car transactions more straightforward and less stressful for customers. CarMax offers a range of services that allow customers to buy cars either online, in-store, or through a combination of both, emphasizing transparency and customer control throughout the buying experience. With over 240 stores across 41 states and a workforce of more than 30,000 employees, CarMax has sold over 11 million cars. The company also operates CarMax Auto Finance, provides auction services for dealers, and maintains service centers and partnerships for vehicle maintenance. CarMax's commitment to innovation and customer service continues to shape its operations and offerings in the used car market.

Summarized from source with an LLMView SourceSector: Consumer Services

Retail Sales Growth

In the second quarter of fiscal year 2025, CarMax Inc. reported a 5.1% increase in retail used unit sales compared to the same quarter in the previous year. Comparable store used unit sales also saw a rise of 4.3%. This growth was partially offset by a 0.3% decrease in wholesale units sold.

Revenue and Profit Margins

CarMax Inc.'s total retail used vehicle revenues increased by 1.5% in the second quarter of fiscal year 2025, driven by higher retail used unit sales. However, the average retail selling price decreased by approximately $1,250 per unit, or 4.6%. Gross profit per retail used unit remained stable at $2,269, while gross profit per wholesale unit was $975, consistent with the previous year.

CarMax Auto Finance Performance

CarMax Auto Finance (CAF) reported a 14.4% decline in income to $115.6 million for the second quarter of fiscal year 2025. This decrease was primarily due to an increase in the provision for loan losses, which outweighed growth in CAF’s average managed receivables. The provision for loan losses increased by $52.2 million, reflecting industry-wide challenges in auto loan losses.

Share Repurchase and Store Expansion

During the second quarter of fiscal year 2025, CarMax Inc. repurchased 1.4 million shares of common stock for $106.1 million. Additionally, the company opened two new store locations in El Paso, Texas, and Gainesville, Georgia, as part of its plan to open a total of five new store locations in fiscal year 2025.

CEO Commentary and Outlook

Bill Nash, President and CEO of CarMax Inc., expressed satisfaction with the company's performance in the second quarter of fiscal year 2025. He highlighted the positive impact of strategic actions on retail used unit sales growth, strong margins, and double-digit earnings growth. Nash emphasized the company's well-positioned business model to drive future sales and profitability increases through its omni-channel capabilities.

Summarized from source with an LLMView Source

Key figures

11.0%1Y

-32.8%3Y

-4.45%5Y

Performance

38.4%1Y

44.5%3Y

45.4%5Y

Volatility