Richmond, VA, Aug. 23, 2024 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE: KMX), the nation's largest retailer of used cars, is excited to announce the launch of its latest and zaniest campaign yet: "BeetleMax: The Way Car Buying Shouldn't Be." This campaign, created in collaboration with Warner Bros. Pictures, is here just in time for the highly anticipated film "Beetlejuice Beetlejuice," only in theaters on September 6, 2024. "We're taking you on a wild ride through a car dealership run by none other than Beetle ...

RICHMOND, VA, Aug. 08, 2024 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE: KMX), announces EVP and Chief Information and Technology Officer, Shamim Mohammad, was inducted into the prestigious CIO Hall of Fame during the 2024 CIO 100 Symposium in Colorado Springs, Colorado, on August 7. As one of 12 inductees, Shamim joins an elite group of CIOs who have significantly contributed to and profoundly influenced the technology profession while advancing the CIO role. The CIO Hall of Fame and the CIO 100 Symposium are o ...

On the cost side, CarMax experienced a 3.1% increase in selling, general, and administrative costs (excluding the legal settlement). Inflation is an ongoing issue, and it's hampering profitability. That said, it wasn't all bad with CarMax delivering gross profit per retail unit sold of $2,347, flat year over year, and record extended protection plan sales of $563 per unit. In late February, Carvana noted, "Net income for FY 2023 totaled $150 million and benefited by $878 million gain on debt extinguishment ...

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 May 31, 2024 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) | --- | --- | |--------------------------------------------------------|------------------------------ ...

These young consumers are the ones who are especially likely to be saving up to buy vehicles. The April installment of the same series, "Why 60 Percent of Gen Z's Live Paycheck to Paycheck," which drew from a survey of more than 3,400 U.S. consumers, found that 11% of Gen Z consumers cite buying a car as their top financial goal. Notably, CarMax highlighted year-over-year price declines, with average retail selling price per unit dropping by around $700. Nash noted that consumers have been buying older used ...

When we last covered CarMax, Inc. (NYSE:KMX) we suggested a buy sub-$70 a few months ago when the stock got nailed following Q4 earnings. KMX is a stock that we routinely cover, as it provides some insight into both car demand and the state of the consumer, and trends in inflation in used car pricing. We have traded KMX successfully many times, and following the last buy call, it rallied from the highs $60's to over $75. But otherwise, shares have been mostly sideways. We think shares can be bought on the n ...

Financial Data and Key Metrics Changes - For Q1 FY 2025, total sales were $7.1 billion, down 7% year-over-year, attributed to lower retail and wholesale volume and prices [5][19] - Net earnings per diluted share were $0.97, compared to $1.44 a year ago, with last year's quarter benefiting from a $59 million legal settlement [19][20] - Total gross profit was $792 million, down 3% from the previous year [19] Business Line Data and Key Metrics Changes - Retail unit sales declined by 3.1%, with an average selling price decrease of approximately $700 per unit or 3% year-over-year [5][19] - Wholesale vehicle margin was $157 million, down 6%, while wholesale gross profit per unit reached a record of $1,064, up from $1,042 a year ago [7][17] - CarMax Auto Finance (CAF) income increased by 7% year-over-year to $147 million, driven by an increase in total interest margin [18][46] Market Data and Key Metrics Changes - Used unit comps were down 3.8%, but comp performance strengthened in the latter half of Q1 [17] - Approximately 14% of retail unit sales were online, consistent with the previous year, while omni-channel sales increased to 57% from 54% [42] - The company sourced approximately 35,000 vehicles from dealers, a 70% increase from last year [6][4] Company Strategy and Development Direction - The company is focusing on enhancing vehicle sourcing capabilities and expanding omni-channel capabilities, including a new order processing system [25][26] - CarMax is positioning itself as a full-spectrum lender through the launch of a non-prime securitization program, which is expected to drive additional financing income [23][47] - The company aims to reduce costs in logistics and reconditioning to improve margins and support sales growth [50][121] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving trends in pricing and vehicle value stability, indicating a positive trajectory for the business [15][98] - The company is committed to managing SG&A expenses and expects to leverage a more fixed cost structure moving forward [37][20] - Management acknowledged the impact of macroeconomic factors on market share and emphasized ongoing efforts to strengthen the business [74][93] Other Important Information - The company repurchased approximately 1.4 million shares for a total of $104 million during the quarter, with $2.3 billion of repurchase authorization remaining [45] - The net interest margin percentage for the quarter was 6.2%, consistent with expectations [10] Q&A Session Summary Question: What are the trends in same-store sales and market share performance? - Management noted improved comp trends in the latter half of Q1, with slightly positive comps in June [29][30] Question: How does the company plan to manage advertising spend and SG&A expenses? - Management indicated that fluctuations in ad spend are expected and emphasized a commitment to managing SG&A expenses effectively [36][37] Question: What are the implications of the non-prime securitization for future growth? - The non-prime securitization is expected to enable growth in lower credit segments and enhance overall financing income [59][85] Question: How is the company addressing supply and sourcing challenges? - Management clarified that there is no significant supply issue, but the focus remains on sourcing quality vehicles that meet company standards [133] Question: What is the company's strategy regarding cost management and efficiency? - The company is actively pursuing cost reductions in logistics and reconditioning to enhance margins and support sales [121][50]

Core Insights - CarMax reported revenue of $7.11 billion for the quarter ended May 2024, reflecting a year-over-year decline of 7.5% and an EPS of $0.97 compared to $1.16 a year ago [4] Financial Performance - The reported revenue of $7.11 billion was slightly below the Zacks Consensus Estimate of $7.2 billion, resulting in a revenue surprise of -1.14% [2] - The company experienced an EPS surprise of -2.02%, with the consensus EPS estimate being $0.99 [2] - CarMax's shares returned +3.5% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [3] Key Metrics - Comparable Store Used Vehicles Sales decreased by 6.1% year-over-year, compared to the average estimate of -2.4% [6] - Revenue per vehicle retailed for used vehicles was $26.53 thousand, slightly above the estimated $26.35 thousand [6] - Total number of stores was 245, slightly below the estimated 246 [6] - Unit sales of wholesale vehicles were 147,685, below the average estimate of 161,029 [6] - Revenue per vehicle retailed for wholesale vehicles was $8.09 thousand, below the estimated $8.38 thousand [6] - Net sales for wholesale vehicles were $1.26 billion, below the estimated $1.35 billion, representing a year-over-year decline of 17% [6] - Net sales for used vehicles were $5.68 billion, below the estimated $5.76 billion, reflecting a year-over-year decline of 5.4% [6] - Other sales and revenues from third-party finance fees were reported at -$1.70 million, worse than the estimated -$1.54 million, showing a significant year-over-year change of -666.7% [6] - Extended protection plan revenues were $118.80 million, exceeding the estimated $110.37 million, with a year-over-year increase of 6.8% [6] - Advertising and subscription revenues were $34.70 million, slightly above the estimated $34.05 million, representing a year-over-year change of +10.5% [6]

CarMax Today CarMax +1.45 (+2.03%) ▼ P/E Ratio 24.03 Add to Watchlist Get CarMax alerts: CarMax struggled in Q1, with volume and pricing impacting the top and bottom lines. However, the company's $7.11 billion in revenue outpaced the consensus reported by MarketBeat despite the 7.5% decline. The critical details are that the revenue was slightly better than expected and aided performance on the bottom line. Regarding units sold, total units fell by 5.3%, while used same-store comparable sales fell by 3.8% a ...

Core Insights - CarMax Inc. reported first-quarter fiscal 2025 adjusted earnings per share of 97 cents, missing the Zacks Consensus Estimate of 99 cents and declining from $1.16 per share in the prior year [1] - The company's revenues for the quarter were $7.11 billion, falling short of the Zacks Consensus Estimate of $7.19 billion and contracting 7.5% year over year [1] Segment Performance - Used-vehicle net sales totaled $5.68 billion, down 5.4% year over year due to a decline in unit sales and average selling price (ASP) [2] - Units sold in the used-vehicle segment decreased 3.1% year over year to 211,132 vehicles, missing the forecast of 228,073 units [2] - The ASP of used vehicles decreased 2.7% from the year-ago quarter to $26,526, beating the projection of $26,191 [2] - Wholesale vehicle revenues contracted 17% year over year to $1.26 billion, below the projection of $1.32 billion due to lower-than-anticipated units sold and ASP [3] - Units sold in the wholesale segment decreased 8.3% to 147,685, missing the forecast of 161,977 [3] - The ASP for wholesale vehicles dipped 10.3% to $8,094, compared to the estimate of $8,139 [3] - Used-vehicle gross profit per unit (GPU) was $2,347, down from $2,361 in the prior year and lagging the estimate of $2,901.2 due to higher-than-expected cost of sales [8] Financial Overview - Selling, general and administrative expenses increased 14% year over year to $638.6 million [10] - As of May 31, 2024, CarMax had cash and cash equivalents of $218.9 million and long-term debt of $1.59 billion [10] - The company repurchased shares worth $104 million during the fiscal first quarter, with $2.26 billion remaining under the share repurchase authorization [4] Other Performance Metrics - Other sales and revenues increased 4.8% year over year to $179.5 million, exceeding the estimate of $166.7 million [9] - CarMax Auto Finance saw a 7% year-over-year rise in income to $147 million at the end of the fiscal first quarter [9] - As of May 31, 2024, CarMax operated 245 used car stores [11]