KMX NYSE· CarMax Inc.
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KMX NYSE· CarMax Inc.
Earnings report Q4 2023

CarMax Reports Decrease in Net Sales and Operating Revenues for Q3 FY2024

Segments of revenue

CarMax's net sales and operating revenues for the third quarter of fiscal year 2024 amounted to $6.15 billion, reflecting a decrease of 5.5% compared to the same period in the previous year. The breakdown of revenue by segment is as follows:

  • Used vehicle sales: $4.83 billion, representing a decline of 7.2%.
  • Wholesale vehicle sales: $1.17 billion, indicating a slight increase of 1.1%.


Despite the overall decrease in net sales and operating revenues, CarMax managed to achieve a gross profit of $612.9 million, reflecting a growth of 6.3% compared to the same quarter last year. This increase in gross profit can be attributed to effective cost management and operational efficiencies. Additionally, the company reported a net earnings of $82.0 million, marking a significant growth of 118.2%. CarMax's management commented that their strategic initiatives, including their omni-channel experience, have contributed to their financial performance.


CarMax faced challenges in its revenue generation during the third quarter of fiscal year 2024. The company experienced a decline in both used vehicle sales and wholesale vehicle sales, which impacted their overall net sales and operating revenues. The decrease in used vehicle sales by 7.2% can be attributed to various factors such as changes in consumer preferences, market conditions, and competition. The decline in wholesale vehicle sales by 19.3% further contributed to the challenges faced by CarMax.


CarMax highlighted the impact of trends and factors that could influence their strategic approach and results in the short and medium term. The company emphasized the importance of their omni-channel experience, which provides customers with the flexibility to purchase vehicles online, in-store, or through a combination of both. CarMax acknowledged that consumer preferences can vary from quarter to quarter, leading to fluctuations in online, omni, and in-person sales.


CarMax reported a decrease in net sales and operating revenues for the third quarter of fiscal year 2024, primarily driven by declines in used vehicle sales and wholesale vehicle sales. However, the company demonstrated strengths in cost management and achieved growth in gross profit and net earnings. CarMax's strategic initiatives, particularly their omni-channel experience, have positioned them well for future growth, although they face challenges in a competitive market and changing consumer preferences.

Source documents

Form 10-Q  filed on Jan 05, 2024
88 pages scanned

Reference data

Company financials Q4 revenue 6.06B
Analyst estimates Q4 EPS missed by -21.35%
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