CarMax(KMX) - 2026 Q2 - Earnings Call Presentation

Financial Performance - Net earnings per share decreased by 24.7% year-over-year to $0.64 in Q2 2026 [19, 22] - Total gross profit decreased by 5.6% year-over-year to $717.7 million [19] - SG&A expense decreased by 1.6% year-over-year to $601.1 million [19] - CarMax Auto Finance (CAF) income decreased by 11.2% year-over-year to $102.6 million [22] - Loan loss provision increased by 26.3% year-over-year to $142.2 million, driven by CY22/23 vintages [22] Sales Performance - Overall unit sales decreased by 5.4% [19] - Retail used unit sales decreased by 2.2% [19] - Wholesale unit sales decreased by 6.3% [19] - Comparable store used unit sales increased by 1.8% [19] Strategic Initiatives - Announced incremental SG&A reductions of at least $150 million over the next 18 months [12] - Digital capabilities supported 80% of retail unit sales [12, 45] - CAF is targeting an increase in penetration from 42% to 50% [51] Capital Allocation - The company is targeting a net leverage ratio between 1.50x and 2.00x [28] - Adjusted net cash from operating activities was $1.022 billion year-to-date [32] - The company returned $210 million to shareholders via share repurchases year-to-date [33]