Thu, Jun 27, 3:26 PM (261 days ago)
CarMax, Inc. reported a 7.5% decrease in net sales and operating revenues for the quarter ended May 31, 2024, totaling $7.11 billion. This decline was driven by a 3.1% drop in used vehicle unit sales and a 2.7% reduction in average retail selling prices. Wholesale vehicle sales also fell by 17%, reflecting an 8.3% decrease in unit sales and a 10.3% drop in average selling prices. Gross profit decreased by 3.1% to $791.9 million, with used vehicle gross profit per unit remaining stable at $2,347. However, SG&A expenses rose by 14.1% to $638.6 million, primarily due to a $59.3 million legal settlement in the prior year and increased share-based compensation expenses. CAF income increased by 7.0% to $147 million, driven by higher average managed receivables and improved interest margins. The allowance for loan losses as a percentage of ending managed receivables remained stable at 2.79%. CarMax plans to open five new stores and one stand-alone auction facility in fiscal 2025, with capital expenditures estimated between $500 million and $550 million. The company accelerated share repurchases during the quarter, with $2.26 billion remaining under the current authorization.