CarMax 10-K Report – $26.54 Billion in Revenue

CarMax, Inc. has recently released its 10-K report, providing a detailed look into its business operations and financial performance. CarMax is the largest retailer of used vehicles in the United States, operating in two segments: CarMax Sales Operations and CarMax Auto Finance. The company offers a wide range of used vehicles, extended protection plans, vehicle repair services, and financing alternatives for retail customers. As of February 29, 2024, CarMax operated 245 used car stores in 109 U.S. television markets.

In its 10-K report, CarMax discussed its Management’s Discussion and Analysis of Financial Condition and Results of Operations. The report highlighted the company’s revenues and profitability for fiscal 2024. It revealed that net sales and operating revenues amounted to $26.54 billion, representing a 10.6% decrease from the previous year. Gross profit and CAF income also experienced declines of 3.1% and 14.3% respectively. The company's net earnings per diluted share were $3.02, reflecting a 0.3% decrease from the previous year. Additionally, CarMax reported a 5.2% decrease in used unit sales and a 6.6% decrease in wholesale unit sales for fiscal 2024.

CarMax's strategic update and future outlook emphasized its omni-channel experience, which provides a common platform across all of CarMax and aims to cater to customer preferences whether in-store, online, or through a combination of both. The company also outlined its initiatives for fiscal 2025, including launching an evolved hub within retail customers’ MyCarMax accounts, continuing to digitize work for customer experience centers, and focusing on bringing more wholesale vehicles into its ecosystem.

Furthermore, CarMax discussed its liquidity and capital allocation strategy, highlighting that it resumed its share repurchases during the third quarter of fiscal 2024 after a pause initiated during the third quarter of the prior fiscal year. The company also expressed a conservative approach to its capital structure to maintain flexibility and support its operations and strategic initiatives for the foreseeable future.

Following these announcements, the company's shares moved -2.8%, and are now trading at a price of $69.4. For the full picture, make sure to review CarMax's 10-K report.

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