CarMax, Inc. (NYSE:KMX) has reported its financial results for the fourth quarter and fiscal year ended February 29, 2024. Here are the key highlights from the report:
- Net revenues were $5.6 billion for the fourth quarter, down 1.7% compared to the prior year.
- Retail used unit sales increased 1.3% while comparable store used unit sales increased 0.1% from the prior year's fourth quarter.
- Wholesale units declined 4.0% from the prior year's fourth quarter.
- Gross profit per retail used unit was $2,251, and gross profit per wholesale unit was $1,120, both slightly down from last year's fourth quarter.
- CarMax bought 234,000 vehicles from consumers and dealers, down 10.8% from the prior year's fourth quarter.
- SG&A expenses increased 1.4% to $580.9 million from the last year's fourth quarter.
- Carmax Auto Finance (CAF) income grew 18.9% from the prior year fourth quarter to $147.3 million due to a lower provision for loan losses and an increase in average managed receivables.
- Net earnings per diluted share were $0.32 compared to $0.44 a year ago.
In terms of sales, combined retail and wholesale used vehicle unit sales were 287,603, a decline of 0.9% from the prior year's fourth quarter. Total retail used vehicle unit sales increased 1.3% to 172,057 compared to the prior year's fourth quarter, while comparable store used unit sales increased 0.1%.
During the fourth quarter, CarMax opened four stores, bringing the total to 245 used car stores as of February 29, 2024. The company also opened its first stand-alone reconditioning center in the Atlanta metro market during the same period.
Looking ahead, the company plans new store growth of five locations for fiscal 2025, as well as its second stand-alone reconditioning center and one stand-alone auction facility. CarMax expects capital expenditures between $500 million and $550 million in fiscal year 2025, largely reflecting spending to support its future long-term growth in offsite-reconditioning and auction facilities, as well as new stores.
CarMax is maintaining its goal to sell more than 2 million combined retail and wholesale units annually, with an expectation to achieve the $33 billion annual revenue target sooner than units. The company also expects to achieve more than 5% nationwide market share of age 0-10 used vehicles sooner than units, but plans to provide an updated timeframe for its expected achievement at the end of fiscal year 2025.
The market has reacted to these announcements by moving the company's shares -12.4% to a price of $69.45. For the full picture, make sure to review CarMax's 8-K report.
