CarMax(KMX)2024-09-27 18:28Financial Performance - CarMax reported net sales and operating revenues of 760.5 million, reflecting a 9.1% increase year-over-year[108]. - For the first six months of fiscal 2025, total net sales and operating revenues decreased by 4.3% to 14,760.9 million in the prior year[122]. - In the second quarter of fiscal 2025, used vehicle sales increased by 1.5% to 1,154.5 million[122]. - Other sales and revenues increased by 13.2% in the second quarter of fiscal 2025, driven by a 19.3% increase in extended protection plan revenues[135]. Vehicle Sales and Inventory - Used vehicle unit sales reached 211,020 in the second quarter, a 5.1% increase from the prior year[108]. - The company purchased approximately 300,000 vehicles in the second quarter, up 2.9% year-over-year, with over 70% self-sufficiency rate[116]. - Used vehicle unit sales increased by 5.1% in the second quarter of fiscal 2025, totaling 211,020 units sold[123]. - Average selling prices for used vehicles decreased by 4.6% to 3.40 billion, a decrease of 115.6 million in the second quarter, with CAF financing 42.6% of retail used vehicle unit sales[104]. - The provision for loan losses was 52.2 million in lifetime loss estimates, nearly an 11% rise in loss expectations[161]. - The net penetration rate for CAF was 42.0% in Q2 of fiscal 2025, down from 42.8% in the prior year[158]. - CAF's managed portfolio aims for cumulative net losses in the 2% to 2.5% range over the life of the loans[150]. - CAF has expanded its asset-backed securitization program to include higher prime and non-prime issuances, enhancing funding capacity[153]. Store Expansion and Operations - The company opened two new stores and a standalone reconditioning center in Richland, Mississippi, with plans to open three additional stores and one auction facility by the end of the fiscal year[120]. - As of August 31, 2024, the company operated used car stores in 109 U.S. television markets, covering approximately 85% of the U.S. population[119]. - The company ended the second quarter of fiscal 2025 with 247 used car stores, an increase from 241 stores at the end of the same period in the previous year[130]. - The company maintains a multi-year pipeline of sites to support store and capacity growth, with 164 of 247 used car stores located on owned sites[171]. Cost Management and Efficiency - CarMax aims to achieve a mid-70% range for SG&A as a percentage of gross profit on an annual basis, requiring low-single-digit gross profit growth[117]. - The company is focused on enhancing logistics efficiency, expecting to drive savings of approximately 200 per retail unit over the next one to two years[115]. - SG&A expenses increased by 24.9 million, or 4.2%, in Q3 2025, primarily due to a 18.71 billion, with cash and cash equivalents at 215.5 million, slightly up from 213.1 million compared to 283.1 million, a decrease from net cash provided of 306.3 million and stock repurchases of $213.3 million[172]. Market Outlook and Risks - The company cautions that various factors, including changes in economic conditions and competitive landscape, could materially affect future results[181]. - There have been no material changes to market risk since February 29, 2024[183].