Group 1 - The automotive industry is making significant decisions regarding electric vehicles (EVs) and U.S. production capacity in response to tariffs [1] - AutoNation, a leading vehicle retailer, recently acquired a Toyota franchise for approximately $120 million, marking its first such move in a decade [2] - This acquisition signals a potential shift in Toyota's strategy towards EVs, as the company has focused more on hybrids rather than fully electric vehicles [3][6] Group 2 - Toyota's Chairman Akio Toyoda has expressed skepticism about the future dominance of EVs, predicting that their global market share may peak at 30% [4] - The company is implementing a "multi-pathway" strategy, emphasizing hybrids as a more balanced approach compared to the industry's push for full electrification [4] - Toyota plans to offer hybrid options for nearly all models in its U.S. lineup by the end of the decade, with popular models like the Camry and RAV4 already featuring hybrid variants [5]

Core Insights - CarMax reported a decline in third-quarter revenue and profit due to weaker demand and falling prices for used vehicles in the U.S. [1] Company Summary - The company experienced a drop in revenue and profit in the third quarter [1] - The decline is attributed to reduced demand for used vehicles [1] - Falling prices of used vehicles in the U.S. have negatively impacted the company's financial performance [1]

Sales Performance - CarMax's used car sales fell short of expectations last quarter [1] Company Challenges - Interim management faces increased pressure to revitalize the struggling used-car retailer [1]

Core Insights - The used car retailer reported better-than-expected earnings and revenue, indicating strong performance in the current market environment [1] - Despite the positive earnings report, the company plans to reduce margins on used cars, which may impact future profitability [1] Financial Performance - The company achieved earnings that surpassed market expectations, reflecting effective cost management and sales strategies [1] - Revenue figures also exceeded forecasts, suggesting robust demand for used vehicles [1] Strategic Outlook - The decision to reduce margins on used cars indicates a strategic shift, potentially aimed at increasing market share or responding to competitive pressures [1] - This move may lead to a reevaluation of pricing strategies in the used car market [1]

CarMax reported lower fiscal third-quarter sales and profit as the company's hold on the used-car market continues to slip. ...

Sales 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]

Core Insights - CarMax reported a decrease in both retail and wholesale used vehicle sales for the third quarter, indicating a need for strategic changes despite its strong brand and infrastructure [3][4][5]. Sales Performance - Combined retail and wholesale used vehicle unit sales were 297,160, a decrease of 7.2% from the prior year's third quarter [4]. - Total retail used vehicle unit sales decreased 8.0% to 169,557 compared to the prior year's third quarter [5]. - Total wholesale vehicle unit sales decreased 6.2% to 127,603 versus the prior year's third quarter [6]. Revenue Analysis - Total retail used vehicle revenues decreased 7.0% compared to the prior year's third quarter, primarily due to the decrease in retail used units sold [5]. - Total wholesale revenues declined 6.3% compared to the prior year's third quarter, driven by the decrease in wholesale units sold [6]. - Other sales and revenues decreased by 9.2%, or $15.2 million, compared with the third quarter of fiscal 2025 [7]. Profitability Metrics - Total gross profit was $590.0 million, down 12.9% versus last year's third quarter [8]. - Retail used vehicle gross profit decreased 10.8%, with gross profit per used unit at $2,235, down $71 from last year's record [8][10]. - Wholesale vehicle gross profit decreased 16.9%, reflecting lower wholesale unit volume and gross profit per unit, which declined $116 to $899 per unit [9]. Operational Changes - SG&A expenses increased 1.0% to $581.4 million, driven by increased advertising spend and restructuring charges related to leadership changes [11][10]. - The company is on track to achieve SG&A reductions of at least $150 million in exit rate savings by the end of fiscal 2027 [12]. Financing and Investment - CarMax Auto Finance (CAF) income increased 9.3% to $174.7 million, aided by a gain on sale of $27.0 million from a securitization transaction [14][13]. - The weighted average contract rate for CAF was 11.0%, down from 11.2% in the prior year's third quarter [15]. Shareholder Returns - The company repurchased 4.6 million shares of common stock for $201.6 million during the third quarter [16]. - As of November 30, 2025, $1.36 billion remained available for repurchase under the outstanding authorization [16]. Future Outlook - The company anticipates improved sales performance trends through enhanced price competitiveness and increased marketing spend in the fourth quarter [21].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased CarMax, Inc. securities between June 20, 2025, and November 5, 2025, of the January 2, 2026, deadline to become lead plaintiffs in a securities class action lawsuit [1]. Group 1: Class Action Details - Investors who bought CarMax securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and those wishing to serve as lead plaintiffs must act by January 2, 2026 [3]. - The lawsuit alleges that defendants made materially false and misleading statements regarding CarMax's growth prospects, which were overstated due to temporary market conditions [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in this area [4]. - The firm has secured significant settlements for investors, including over $438 million in 2019 alone, and has been recognized as a leader in the field of securities class action litigation [4].

NEW YORK, Dec. 17, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of CarMax, Inc. (NYSE: KMX). Shareholders who purchased shares of KMX during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/carmax-inc-loss-submission-form/?id=180536&from=3 CLASS PERIOD: June 20, 2025 to November ...

New York, New York--(Newsfile Corp. - December 17, 2025) - Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against CarMax, Inc. (NYSE: KMX) and certain of the Company's senior executives for securities fraud after a significant stock drop resulting from the potential violations of the federal securities laws. If you invested in CarMax, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/carmax-inc-class-ac ...