- CarMax (KMX, Financial) reports a significant 81.3% increase in earnings per share to $0.58 for Q4 FY2025.
- Net revenues for the fourth quarter increased by 6.7% to $6.0 billion, with notable growth across various segments.
- Online sales accounted for a substantial portion of transactions, contributing 29% to net revenues.
CarMax, Inc. (KMX), the largest used-car retailer in the United States, has reported impressive financial results for the fourth quarter and fiscal year ending February 28, 2025. The company's net revenues reached $6.0 billion for the fourth quarter, marking a 6.7% year-over-year increase. This growth was driven by a 6.2% rise in retail used unit sales and a 3.1% increase in wholesale units.
The profitability of CarMax was underscored by a record gross profit per retail unit of $2,322 in Q4, alongside a 13.9% rise in total gross profit amounting to $667.9 million. Additionally, CarMax Auto Finance (CAF) income grew by 8.2% to $159.3 million. Notably, net earnings per diluted share surged by 81.3% to $0.58, reflecting the company's robust financial performance.
CarMax's operational highlights include a 15.3% increase in vehicle acquisitions from consumers and dealers, totaling 269,000 units. In terms of digital engagement, online retail sales made up 15% of retail unit sales, with online transactions representing 29% of net revenues. The company demonstrated strong confidence in its growth prospects by repurchasing $98.5 million worth of shares and opening two new store locations.
CarMax maintained a stable 3.7% market share in the nationwide market for 0-10 year old used vehicles throughout 2024. Additionally, the expansion of CarMax's presence is evident through plans to add six new stores and four stand-alone reconditioning/auction centers in the upcoming fiscal year.
The company's focus on leveraging technology and streamlining operations positions it well for sustained growth amid a challenging automotive market. The strategic initiatives executed by CarMax are expected to further enhance customer experiences and bolster market presence, creating a strong foundation for future development.
