Key TakeawaysU.S. equities bounced back from Wednesday's declines with gains at midday Thursday, Dec. 21, 2023, after several companies reported better-than-expected results.Wholesale market vehicle sales rose at CarMax, and shares of the used car giant took off.Paychex shares tumbled after it said macroeconomic pressure on small- and mid-sized businesses hurt demand.U.S. equities brushed off Wednesday’s selloff and went back to their winning ways at midday on Thursday after several companies reported bette ...

Financial Data and Key Metrics Changes - Total sales for the second quarter of FY '24 were $7.1 billion, down 13% year-over-year, attributed to lower retail and wholesale volume and prices [1] - Net earnings per diluted share decreased to $0.75 from $0.79 a year ago [8] - Total gross profit was $697 million, down 5% from the previous year [8] - SG&A expenses were $586 million, down 12% year-over-year, reflecting cost management efforts [9] Business Line Data and Key Metrics Changes - Retail unit sales declined by 7.4%, with used unit comps down 9%, although there was sequential improvement [1] - Wholesale unit sales decreased by 11.2% compared to the same quarter last year [2] - Retail gross profit per used unit was $2,251, similar to last year's record high of $2,282 [2] - Wholesale gross profit per unit increased to $963 from $881 a year ago [3] Market Data and Key Metrics Changes - Approximately 14% of retail unit sales were online, up from 11% last year [5] - Total revenue from online transactions was approximately 31%, slightly up from 30% last year [5] - The weighted average contract rate charged to new customers was 11.1%, an increase of 170 basis points year-over-year [17] Company Strategy and Development Direction - The company aims to enhance customer experience through operational efficiencies and a seamless omni-channel experience [22] - New capabilities are being rolled out to improve digital shopping experiences and customer service [23][24] - The company is focusing on maintaining a high self-sufficiency rate in vehicle sourcing, which remained above 70% [4][95] Management's Comments on Operating Environment and Future Outlook - Management noted that trade-in cycles are elongating due to affordability issues, particularly among lower credit customers [39] - There is an expectation of continued demand for older vehicles, with sales of cars over six years old increasing [47] - The company is closely monitoring the impact of UAW strikes on vehicle supply and pricing [107] Other Important Information - CarMax Auto Finance (CAF) income decreased to $135 million from $183 million year-over-year, primarily due to increased interest expenses [18] - The company plans to restart its share repurchase program at a modest pace, initially targeting approximately $50 million per quarter [14][44] Q&A Session Summary Question: Trade-in cycles and customer reluctance - Management acknowledged that trade-in cycles are longer as customers are hesitant to give up lower rates locked in during the pandemic [39] Question: Share buyback decision - The decision to restart buybacks is part of a capital allocation strategy to balance business investment and shareholder returns, starting modestly at about $50 million per quarter [44][46] Question: Demand trends and vehicle sales - Management noted improved demand for older vehicles, particularly those over six years old, despite challenges in converting interest into sales due to affordability issues [47][39] Question: Impact of UAW strikes - Management is monitoring the situation closely, noting that the impact on vehicle supply and pricing will depend on the duration of the strikes [107] Question: Financing rates and customer affordability - The flat weighted average contract rate indicates that customers may be reaching their limit on affordability, with management carefully testing rates to optimize overall value [152]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended August 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-31420 CARMAX, INC. (Exact name of registrant as specified in its charter) Virginia 54-1821055 (State or other jurisdiction of incorporation) (I.R.S. Employer Identification ...

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the Quarterly Period Ended May 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-31420 CARMAX, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) (I.R.S. Employer Identification No.) 12800 Tuckahoe Cre ...

Financial Data and Key Metrics Changes - For the first quarter of FY'24, total sales were $7.7 billion, down 17% year-over-year, driven by lower retail and wholesale volume and prices [79] - Net earnings per diluted share were $1.44, down from $1.56 a year ago, with total gross profit at $817 million, down 7% from the previous year [82][84] - Average selling price declined approximately $1,600 per unit or 5% year-over-year, while retail gross profit per used unit was $2,361, consistent with the previous year [60][82] Business Line Data and Key Metrics Changes - Used retail margin was $515 million, down 9% year-over-year, while wholesale vehicle margin was $168 million, down 12% [64] - CarMax Auto Finance (CAF) income for the quarter was $137 million, down from $204 million in the same period last year, primarily due to an increase in loss provision and interest expense [21][62] - Retail unit sales declined 9.6%, with used unit comps down 11.4%, reflecting an improvement from previous quarters [79] Market Data and Key Metrics Changes - Wholesale unit sales were down 13.6% compared to the first quarter last year, but this was an improvement from the declines seen in the previous year [53] - Approximately 14% of retail unit sales were online, up from 11% last year, while omni sales remained consistent at 54% [54] - The company sourced approximately 20,000 vehicles through dealers, up 20% from last year [53] Company Strategy and Development Direction - The company is focused on enhancing its omni-channel platform to deliver a customer-centric experience, integrating digital and physical transactions [26][28] - Continued investment in technology, such as the Sky virtual assistant, aims to improve operational efficiency and customer service [28][110] - The company plans to roll out additional functionalities to Sky throughout fiscal 2024, enhancing customer interactions and reducing operational costs [30][112] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the trajectory of the business, noting improvements in sequential growth despite year-over-year declines [6][78] - The company anticipates that the steps taken will enable it to emerge stronger from the current environment, with a focus on driving robust growth as the market improves [33] - Management acknowledged ongoing affordability issues but noted a shift in vehicle mix towards more affordable options [121][124] Other Important Information - SG&A expenses for the first quarter were $560 million, down 15% from the prior year, reflecting cost management efforts [84] - The company has paused share buybacks in the first quarter, maintaining a $2.45 billion authorization for future capital returns [70] - The existing Tier 1 portfolio continues to trend within the targeted 2% to 2.5% cumulative net credit loss range, with expectations for a reduction in loss rates for future originations [22] Q&A Session All Questions and Answers Question: What is the market share dynamic observed early in the year? - Management noted that they believed they had bottomed out in December, with title data through April confirming this [37] Question: Can you discuss the impact of student loan payments on demand? - Management indicated that most retail customers are likely outside the student loan period, suggesting limited impact on demand [12][14] Question: How is the company managing SG&A costs? - Management highlighted a focus on operational changes and staffing adjustments to drive improvements in SG&A [38][66] Question: What are the expectations for gross profit margins moving forward? - Management expects margins to be similar to last year, with a target range of $2,100 to $2,200 for the full year [60][104] Question: How is the company addressing inventory mix and affordability? - Management noted a shift towards older vehicles and increased availability of cars under $20,000 to enhance affordability [122][124]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file number 001-31420 CARMAX, INC. (Exact name of registrant as specified in its charter) Virginia 54-1821055 (State or other jurisdiction ...

CarMax, Inc. (NYSE:KMX) Q4 2023 Earnings Conference Call April 11, 2023 9:00 AM ET Company Participants David Lowenstein - Assistant Vice President, Investor Relations Bill Nash - President and Chief Executive Officer Enrique Mayor-Mora - Executive Vice President, Chief Financial Officer Jon Daniels - Senior Vice President, CarMax Auto Finance Operations Conference Call Participants John Healy - Northcoast Research Michael Montani - Evercore ISI Craig Kennison - Baird Rajat Gupta - JPMorgan Brian Nagel - Op ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended November 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-31420 CARMAX, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) (I.R.S. Employer Identification No.) 12800 Tuckaho ...

CarMax, Inc. (NYSE:KMX) Q3 2023 Earnings Conference Call December 22, 2022 9:00 AM ET Corporate Participants David Lowenstein - Investor Relations Bill Nash - President and Chief Executive Officer Enrique Mayor-Mora - Executive Vice President, Chief Financial Officer Jon Daniels - Senior Vice President, CarMax Auto Finance Operations Conference Call Participants Brian Nagel - Oppenheimer Rajat Gupta - JPMorgan John Healy - Northcoast Research Daniel Imbro - Stephens Inc. John Murphy - Bank of America Seth B ...

CarMax, Inc. (NYSE:KMX) Q2 2023 Earnings Conference Call September 29, 2022 9:00 AM ET Company Participants David Lowenstein - Investor Relations Bill Nash - President and Chief Executive Officer Enrique Mayor-Mora - Executive Vice President, Chief Financial Officer Jon Daniels - Senior Vice President, CarMax Auto Finance Operations Conference Call Participants Craig Kennison - Robert W. Baird Brian Nagel - Oppenheimer Sharon Zackfia - William Blair Michael Montani - Evercore Adam Jonas - Morgan Stanley Joh ...