CarMax(US:KMX)2025-12-18 11:59Sales Performance - Retail used unit sales decreased by 8.0% to 169,557 units, while comparable store used unit sales declined by 9.0%[6] - Total wholesale vehicle unit sales decreased by 6.2% to 127,603 units, with wholesale revenues declining by 6.3%[7] - Used vehicle sales for the three months ended November 30, 2025, were $4,548,197, representing 78.5% of total sales, compared to $4,888,858 (78.6%) in the same period of 2024[42] Financial Performance - Total net sales and operating revenues decreased by 6.9% to $5,793.9 million compared to the prior year's third quarter[21] - Net earnings for the three months ended November 30, 2025, were $62.2 million, a decline of 50.4% compared to $125.4 million in 2024, resulting in a net earnings per diluted share of $0.43[32] - Gross profit for the three months ended November 30, 2025, was $590.0 million, down 12.9% from $677.6 million in 2024, with a gross profit margin of 10.2%[28] - Used vehicle gross profit decreased by 10.8% to $378.9 million for the three months ended November 30, 2025, compared to $424.8 million in 2024[28] - Net earnings for the nine months ended November 30, 2025, decreased to $367,974, down from $410,690 in 2024, representing a decline of approximately 10.4%[46] Expenses and Costs - SG&A expenses increased by 1.0% to $581.4 million, with SG&A as a percentage of gross profit rising to 98.5% from 85.0%[12] - Total SG&A expenses for the three months ended November 30, 2025, were $581.4 million, a slight increase of 1.0% from $575.8 million in 2024, with SG&A as a percentage of gross profit rising to 98.5%[30] - The provision for loan losses increased to $317,335, up from $266,406, indicating a rise of approximately 19.1%[46] Cash Flow and Capital Management - Net cash provided by operating activities significantly increased to $2,338,114, compared to $478,062 in the previous year, marking a rise of over 388%[46] - Capital expenditures rose to $407,962, up from $340,322, indicating an increase of approximately 19.9%[46] - Proceeds from issuances of long-term debt increased to $87,000, compared to $34,400 in the prior year, reflecting a growth of 153.2%[46] - Cash, cash equivalents, and restricted cash at the end of the period decreased to $912,803 from $975,836, a decline of about 6.4%[46] Shareholder Actions - The company repurchased 4.6 million shares of common stock for $201.6 million, with $1.36 billion remaining available for repurchase[17] Future Outlook - The company expects to achieve SG&A reductions of at least $150 million in exit rate savings by the end of fiscal 2027[13] - The company plans to release results for the fourth quarter ending February 28, 2026, on April 14, 2026[35] Inventory and Assets - The company reported a decrease in inventory to $3,127,948 as of November 30, 2025, from $3,934,622 as of February 28, 2025[44] - Total current assets as of November 30, 2025, were $4,198,205, a decrease from $5,077,636 as of February 28, 2025[44] - Total assets as of November 30, 2025, were $25,562,355, down from $27,404,206 as of February 28, 2025[44] - Total liabilities as of November 30, 2025, were $19,497,821, compared to $21,161,218 as of February 28, 2025[44] Auto Finance Performance - CarMax Auto Finance (CAF) income increased by 9.3% to $174.7 million, driven by a gain on sale of $27.0 million from a securitization transaction[15] - CarMax Auto Finance income for the three months ended November 30, 2025, was $174,738, an increase from $159,885 in 2024[42] - The average auto loans outstanding for the three months ended November 30, 2025, was $16,805.2 million, down from $17,771.7 million in 2024[31] - The net penetration rate for auto loans was 42.6% for the three months ended November 30, 2025, slightly down from 43.1% in 2024[31]