CarMax Inc (KMX) Q3 2025 Earnings Call Highlights: Strong Sales Growth and Improved ...

GuruFocus.com12-20

Total Sales: $6.2 billion, up 1% year-over-year. Retail Unit Sales: Increased 5.4% year-over-year. Used Unit Comps: Up 4.3% year-over-year. Average Retail Selling Price: Declined approximately $1,100 ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCarMax Inc (KMX) Q3 2025 Earnings Call Highlights: Strong Sales Growth and Improved ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-20 15:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/carmax-inc-kmx-q3-2025-070057854.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Total Sales: $6.2 billion, up 1% year-over-year.\nRetail Unit Sales: Increased 5.4% year-over-year.\nUsed Unit Comps: Up 4.3% year-over-year.\nAverage Retail Selling Price: Declined approximately $1,100 ...</p>\n\n<a href=\"https://finance.yahoo.com/news/carmax-inc-kmx-q3-2025-070057854.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KMX","symbol_name":"车美仕","start_time":0,"source_url":"https://finance.yahoo.com/news/carmax-inc-kmx-q3-2025-070057854.html","article_id":"2492621874","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/gcy6Vx2J5lNtEcg_bNN34Q--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/c1d19027d0b916c4dfb8205398613d53"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492621874","pubTimestamp":1734678057,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Average Retail Selling Price: Declined approximately $1,100 per unit or 4% year-over-year.Retail Gross Profit Per Used Unit: $2,306, compared to $2,277 last year.Wholesale Gross Profit Per Unit: $1,015, up from $961 last year.Online Retail Unit Sales: Approximately 15%, up from 14% last year.Online Transaction Revenue: Approximately 32% of total revenue, up from 31% last year.CarMax Auto Finance Income: $160 million, up 8% year-over-year.Net Earnings Per Diluted Share: $0.81, up 56% year-over-year.Total Gross Profit: $678 million, up 11% year-over-year.Shares Repurchased: Approximately 1.5 million shares for $115 million.GuruFocus has detected 8 Warning Signs with KMX.CarMax Inc  reported a 5.4% increase in total retail unit sales and a 6.3% increase in wholesale unit sales year-over-year.CarMax Auto Finance  income increased by 8% year-over-year, with a net interest margin improvement of 35 basis points to 6.2%.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"KMX":"车美仕"},"translate_title":"CarMax Inc(KMX)2025年第三季度收益看涨期权亮点：强劲的销售增长和改善……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KMX":1},"content_text":"Total Sales: $6.2 billion, up 1% year-over-year.\nRetail Unit Sales: Increased 5.4% year-over-year.\nUsed Unit Comps: Up 4.3% year-over-year.\nAverage Retail Selling Price: Declined approximately $1,100 per unit or 4% year-over-year.\nRetail Gross Profit Per Used Unit: $2,306, compared to $2,277 last year.\nWholesale Unit Sales: Increased 6.3% year-over-year.\nWholesale Gross Profit Per Unit: $1,015, up from $961 last year.\nVehicles Bought: Approximately 270,000, up 8% year-over-year.\nOnline Retail Unit Sales: Approximately 15%, up from 14% last year.\nOnline Transaction Revenue: Approximately 32% of total revenue, up from 31% last year.\nCarMax Auto Finance Income: $160 million, up 8% year-over-year.\nNet Earnings Per Diluted Share: $0.81, up 56% year-over-year.\nTotal Gross Profit: $678 million, up 11% year-over-year.\nSG&A Expenses: $576 million, up 3% year-over-year.\nShares Repurchased: Approximately 1.5 million shares for $115 million.\n\n\nWarning! GuruFocus has detected 8 Warning Signs with KMX.\n\nRelease Date: December 19, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nCarMax Inc (NYSE:KMX) reported a 5.4% increase in total retail unit sales and a 6.3% increase in wholesale unit sales year-over-year.\nThe company achieved double-digit EPS growth, with net earnings per diluted share up 56% compared to the previous year.\nCarMax Inc (NYSE:KMX) successfully leveraged SG&A expenses, achieving a 640 basis point improvement driven by gross profit growth and expense efficiency actions.\nThe omnichannel retail experience saw increased adoption, with 15% of retail unit sales conducted online, up from 14% the previous year.\nCarMax Auto Finance (CAF) income increased by 8% year-over-year, with a net interest margin improvement of 35 basis points to 6.2%.\n\n Negative Points \n\nAverage selling prices for both retail and wholesale units declined, with retail prices down approximately $1,100 per unit and wholesale prices down $500 per unit year-over-year.\nThe provision for loan losses increased to $73 million from $68 million in the previous year, reflecting ongoing credit risk management challenges.\nSG&A expenses rose by 3% or $16 million from the prior year, primarily due to increased compensation and benefits.\nDespite improvements, the company continues to face challenges in the broader used car market, with ongoing consumer inflationary pressures impacting sales.\nThe company incurred a one-time charge of $5 million related to logistics operations, although this was offset by efficiencies gained.\n\n Q & A Highlights \nQ: What should be considered a normalized used car unit comp for CarMax, and how should we think about expense leverage as comps improve? A: It's hard to define a normalized unit comp, but we're pleased with the sales momentum. Each month of the quarter showed improvement, and December's performance has accelerated beyond the third quarter's comp. We expect the fourth quarter to be stronger despite some headwinds. Regarding SG&A leverage, we aim for a mid-70% SG&A to gross profit ratio, requiring continued sales volume improvement and cost management. We're past the heavy investment phase and are now leveraging capabilities to drive growth and efficiencies.\nQ: Has the improvement in sales been more about conversion than traffic, and how much is due to industry-wide price changes versus internal efforts? A: The performance is primarily driven by conversion, both online and in-store, with web traffic being flat. It's a combination of internal execution and external factors. Prices have been down year-over-year, which helps, but internal improvements in customer experience and efficiency are equally important. Initiatives like the customer shopping hub and cost management have contributed to better conversion rates.\nQ: How is CarMax managing to source vehicles effectively despite industry-wide supply shortages? A: We feel great about our diversified sourcing from consumers and dealers. There hasn't been a significant mix shift in vehicle age. Our ability to buy vehicles directly from consumers and dealers gives us an advantage in sourcing hard-to-find vehicles. We've also increased our focus on vehicles under $20,000, which has helped us improve our sourcing.\nQ: Can you provide an update on your cost-out initiatives in retail and wholesale, and how are you using the savings? A: We're on track to achieve $200 per unit in cost savings, split between reconditioning and logistics. We've realized about half of that so far. The savings are primarily being passed on to consumers, allowing us to maintain solid margins. In wholesale, the improved environment and increased dealer participation in our Max offer program have contributed to strong performance.\nQ: What are your thoughts on the upcoming tax season, and are you seeing any changes in pricing trends? A: We're planning for a decent tax season and have built flexibility into our inventory management to adapt to varying demand levels. As for pricing, we feel good about our pricing strategy and diversification in sourcing. While I can't provide specific December figures, we expect prices to remain competitive.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492621874"}