CarMax, Inc. has recently released its 10-Q report, providing a detailed look into its financial performance and operations. CarMax, the largest retailer of used vehicles in the United States, operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The Sales Operations segment includes retail sales of used vehicles, wholesale vehicle sales, extended protection plan products, and vehicle repair services. The Auto Finance segment provides financing alternatives for retail customers. As of November 30, 2024, CarMax operated 248 used car stores in 109 U.S. television markets.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, CarMax highlighted its revenues and profitability for the first nine months of fiscal 2025. It reported net sales and operating revenues of $20,350.3 million, a 2.7% decrease from the same period in fiscal 2024. Gross profit for the same period was $2,230.0 million, representing a 4.8% increase. CarMax also noted that its CarMax Auto Finance segment generated $422.4 million in income, reflecting a marginal 0.3% increase. The company's net earnings for the first nine months of fiscal 2025 were $410.7 million, down by 4.3% compared to the previous year.
The report also highlighted CarMax's strategic update and future outlook, emphasizing its omni-channel experience and the goal to provide the best customer experience whether in-store, online, or a combination of both. The company mentioned that approximately 70% of its customers leveraged some or all of its digital capabilities to complete their transactions during fiscal 2024. CarMax also outlined its long-term targets, stating its goal to sell more than 2 million combined retail and wholesale units annually between fiscal 2026 and fiscal 2030.
Furthermore, CarMax discussed its liquidity, capital allocation strategy, and efforts to drive down cost of sales through efficiency opportunities in its logistics network and reconditioning operations. The company also provided insights into its market share performance and strategic approach, including focusing on delivering a customer-driven, omni-channel buying and selling experience, leveraging data and advanced analytics, and becoming the leading retailer of used electric vehicles in the market.
As a result of these announcements, the company's shares have moved -1.3% on the market, and are now trading at a price of $78.75. Check out the company's full 10-Q submission here.
