Welcome to our dedicated page for CarMax news (Ticker: KMX), a resource for investors and traders seeking the latest updates and insights on CarMax stock.
CarMax Inc. (NYSE: KMX) is the largest retailer of used cars in the United States, founded in 1993 in Richmond, Virginia. Since its inception, CarMax has grown from a single store to over 240 locations, revolutionizing the car buying experience by making it easy and enjoyable. The company sells, finances, and services a wide range of vehicles, both used and new, through its extensive retail chain. CarMax also operates a significant wholesale business, auctioning used cars and adding to its robust revenue streams.
In the fiscal year ending February 28, 2023, CarMax sold approximately 810,000 used vehicles and 590,000 wholesale vehicles, showcasing its substantial market presence. The company also offers financial services, with CarMax Auto Finance originating nearly $9 billion in receivables, contributing to a $17 billion portfolio. Despite its size, CarMax estimates it holds only 3.7% of the U.S. market share for vehicles aged 0-10 years, aiming to increase this share to over 5% in the coming years.
CarMax is committed to sustainability and has made significant strides in reducing its carbon footprint. Recently, the company announced the pilot of its first all-electric semi-truck in California, a move aligned with its target of reducing greenhouse gas emissions by 50% by 2025 and achieving net-zero carbon emissions by 2050. The company also ranks 13th on the EPA’s Green Power Partnership Top 30 Retail list, with 36% of its electricity coming from renewable sources.
Recognized for its exemplary work environment, CarMax has been listed on the Fortune 100 Best Companies to Work For® for 19 consecutive years. The company prides itself on integrity, honesty, and transparency, providing a truly personalized experience for customers, whether online or in-store. The company’s success is attributed to its dedicated team of over 30,000 associates, who are fundamental to its ongoing growth and innovation in the automotive retail industry.
CarMax reported its fourth quarter and fiscal year results for the year ending February 28, 2023. Net revenues for Q4 reached $5.7 billion, a decrease of 25.6% compared to the prior year. For the fiscal year, revenues fell 6.9% to $29.7 billion, driven by a 12.6% decline in retail used unit sales. Gross profit per retail unit increased to $2,277, while total gross profit decreased 14.1% from the previous year. CarMax Auto Finance income dropped 36.1% to $123.9 million due to higher loan loss provisions. The company opened five new stores in Q4 and plans to open five more in fiscal 2024. CarMax affirms long-term targets of selling between 2 million and 2.4 million vehicles by fiscal 2026.
CarMax, Inc. (NYSE:KMX) will announce its fourth-quarter financial results for the period ending February 28, 2023, on April 11, 2023, before market opening. A conference call for investors will take place at 9:00 a.m. ET, featuring CEO Bill Nash, CFO Enrique Mayor-Mora, and SVP Jon Daniels. Participants can join via telephone or listen to a live audio webcast available on CarMax's investor relations website. A replay will be accessible until June 22, 2023. CarMax, the largest retailer of used vehicles in the U.S., sold approximately 924,000 used vehicles and originated over $9 billion in auto finance receivables during fiscal 2022.
CarMax has partnered with UVeye to enhance its vehicle assessment capabilities using AI technology. This collaboration follows CarMax's investment in UVeye in 2021, aiming to streamline the auction process for wholesale vehicles. CarMax has implemented UVeye's inspection systems across several locations, allowing for detailed condition reports, including high-resolution imagery and diagnostics for potential vehicle issues. With over 706,000 vehicles sold at auction in the last fiscal year, this initiative is expected to improve efficiencies in CarMax's wholesale operations. The companies will showcase this partnership at the NADA conference from January 26-29, 2023.
CarMax, the largest used car retailer in the U.S., has launched a new online pre-qualification tool that allows customers to receive personalized financing terms without affecting their credit scores. This initiative aims to enhance the car-buying experience amid rising inflation and interest rates. Customers can obtain financing details in minutes and filter vehicles according to their budget. Approximately 95% of applicants receive approval through multiple lenders. The feature is available on CarMax.com and the mobile app, enabling efficient searching and comparison of vehicles.
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