CarMax Inc ( (KMX) ) has released its Q3 earnings. Here is a breakdown of the information CarMax Inc presented to its investors.
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CarMax Inc., the largest retailer of used autos in the United States, is renowned for its honesty, transparency, and personalized customer experience in the automotive retail industry. With over 245 store locations and a significant online presence, CarMax provides a seamless shopping experience both online and in-store.
In its latest earnings report for the third quarter of the fiscal year 2025, CarMax Inc. announced a remarkable over 50% growth in earnings, attributed to gains across various segments of the business. Key highlights include increased retail and wholesale unit sales, elevated gross profits, and a substantial share repurchase program.
The company’s performance was driven by a 5.4% increase in retail used unit sales and a 6.3% rise in wholesale unit sales. Total gross profit surged by 10.6%, reaching $677.6 million, while CarMax Auto Finance reported a 7.6% increase in income due to improved net interest margins and receivables. The company also achieved significant improvements in its SG&A expense leverage, which rose only 2.8% against the backdrop of rising gross profits.
CarMax’s strategic focus on online sales paid off, with online transactions accounting for 32% of net revenues. The company’s robust financial health is further evidenced by its ongoing share repurchase, with $114.8 million in common stock repurchased during the quarter.
Looking ahead, CarMax remains optimistic about leveraging its omni-channel platform to capitalize on market opportunities. The company’s management is confident in sustaining its growth trajectory by focusing on operational efficiency and expanding its market reach, driven by a stable vehicle valuation environment.
