Fri, Sep 27, 6:30 PM (93 days ago)
For the quarter ended August 31, 2024, CarMax reported a 0.9% decrease in net sales and operating revenues to $7,013.5 million, with a 4.3% decline in year-to-date revenues at $14,126.9 million. Used vehicle sales increased by 1.5% in Q2, driven by a 5.1% rise in unit sales, although average selling prices fell by 4.6%. Gross profit rose 9.1% to $760.5 million for the quarter, while net earnings increased 11.9% to $132.8 million. However, CarMax Auto Finance (CAF) income decreased by 14.4% due to higher provisions for loan losses, reflecting industry-wide challenges. Cash flow from operations improved significantly, totaling $501.4 million compared to a cash outflow in the prior year. Total debt stood at $18,705.7 million, with cash and equivalents of $524.7 million. The company continues to focus on maintaining liquidity while investing in growth, including plans for new store openings and capital expenditures of $500-$550 million in fiscal 2025. Overall, while CarMax navigates a challenging market, its diversified model and strategic initiatives position it for future growth.