CarMax(KMX) - 2025 Q1 - Quarterly Results

Sales Performance - Retail used unit sales decreased by 3.1% to 211,132 units, while comparable store used unit sales fell by 3.8% from the prior year's first quarter[6]. - Total net sales and operating revenues were $7.11 billion, a decline of 7.5% compared to$ 7.69 billion in the prior year's first quarter[21]. - Total wholesale vehicle unit sales declined by 8.3% to 147,685 units, with wholesale revenues decreasing by 17.0%[7]. - The average retail selling price for used vehicles decreased by approximately $700 per unit, or 2.7%, to$ 26,526[23]. - Online retail sales accounted for 14% of retail unit sales, with revenue from online transactions totaling $2.1 billion, representing approximately 30% of net revenues[9]. Profitability - Gross profit decreased by 3.1% to$ 791.9 million, with retail used vehicle gross profit per unit remaining stable at $2,347[9]. - Used vehicle gross profit decreased by 3.7% to$ 495.5 million compared to $514.6 million in the same period last year[29]. - Total gross profit declined by 3.1% to$ 791.9 million from $817.4 million year-over-year[29]. - Net earnings fell by 33.2% to$ 152.4 million, down from $228.3 million in the same quarter last year[32]. Expenses - SG&A expenses rose by 14.1% to$ 638.6 million, with SG&A as a percentage of gross profit increasing to 80.6%[12]. - SG&A expenses increased by 14.1% to $638.6 million, up from$ 559.8 million in the prior year, with SG&A as a percentage of gross profit rising to 80.6% from 68.5%[30]. Financing and Investments - CarMax Auto Finance (CAF) income increased by 7.0% to $147.0 million, driven by growth in average managed receivables and net interest margin percentage[14]. - Interest margin improved to$ 270.2 million, a 4.9% increase from $257.9 million in the previous year[31]. - The net penetration rate for loans originated by CarMax Auto Finance rose to 43.3%, compared to 42.7% in the prior year[31]. - The company repurchased 1.4 million shares of common stock for$ 104.0 million during the first quarter, with $2.26 billion remaining available for repurchase[18]. - The company launched its first non-prime asset-backed securitization deal in June 2024 as part of the expansion of its securitization program[16]. Assets and Liabilities - Total assets increased to$ 27,242,094 thousand as of May 31, 2024, compared to $27,196,797 thousand as of February 29, 2024, reflecting a growth of 0.17%[45]. - Total current assets decreased to$ 4,970,307 thousand as of May 31, 2024, down from $5,226,594 thousand as of February 29, 2024, representing a decline of 4.9%[45]. - Total liabilities decreased slightly to$ 21,075,224 thousand as of May 31, 2024, from $21,123,057 thousand as of February 29, 2024[45]. - Retained earnings increased to$ 4,192,798 thousand as of May 31, 2024, compared to $4,126,909 thousand as of February 29, 2024, indicating a growth of 1.6%[45]. - Total shareholders' equity rose to$ 6,166,870 thousand as of May 31, 2024, from $6,073,740 thousand as of February 29, 2024, reflecting an increase of 1.5%[45]. Future Outlook - The company sold approximately 770,000 used vehicles and 550,000 wholesale vehicles during the fiscal year ended February 29, 2024[36]. - CarMax plans to release results for the second quarter ending August 31, 2024, on September 26, 2024[35]. - The company reported a net cash used in operating activities of$ 117,689 thousand for the three months ended May 31, 2024, compared to $185,285 thousand in the same period of 2023[47]. - Capital expenditures for the three months ended May 31, 2024, were$ 103,914 thousand, down from $136,719 thousand in the same period of 2023[47]. - The company issued non-recourse notes payable amounting to$ 3,676,000 thousand during the financing activities[47].