CarMax(NYSE) KMX

CarMax helps people buy and sell used cars without the hassle. It gives shoppers fixed prices for every vehicle on the lot. The company also provides loans to make car buying easier.

Cars, Loans, and Protection

• Used Vehicle Sales: Retail sales of pre-owned cars through a nationwide network of physical stores and digital platforms.
• Wholesale Vehicle Sales: Weekly auctions for older, high-mileage cars that do not meet retail quality standards.
• CarMax Auto Finance: Internal lending segment (CAF) that financed 43.3% of used car sales in the first three months of fiscal 2027.
• Extended Protection Plans: Optional products (EPP) including service plans and guaranteed asset protection (GAP) for vehicle buyers.
• Edmunds Services: Digital advertising and subscription products provided through the Edmunds online car research platform.

Expansion and Strategic Moves

• Opened a stand-alone reconditioning and auction center in Locust Grove, Georgia during the first quarter of fiscal 2027.
• Launched a nationwide rollout of updated extended protection plans across CarMax stores to improve profit margins.
• Established a four-pillar growth strategy to lower operating costs and connect digital tools with in-store shopping.
• Integrated the Edmunds research platform to generate revenue from automotive advertising and dealer subscriptions.

What Makes CarMax Stand Out

CarMax uses proprietary pricing algorithms and transaction data to provide fixed prices for every vehicle. This scale supports an integrated experience where customers can shop online or in person.

Key Data from Fiscal 2027

• Net sales and operating revenues were $8.01 billion in the first quarter of fiscal 2027, up 6.2% year-over-year.
• Net earnings were $185.6 million in the first quarter of fiscal 2027, down 11.8% year-over-year.
• Wholesale unit sales rose to 162,064 in the first quarter of fiscal 2027, up 8.4% year-over-year.
• Used vehicle gross profit per unit was $2,177 in the first quarter of fiscal 2027, down 9.6% year-over-year.
• Selling, general and administrative (SG&A) expenses fell to $635.2 million in the first quarter of fiscal 2027, down 3.7% year-over-year.

Bottom Line

CarMax has evolved from a traditional car dealership into a technology-driven retailer that manages its own financing and digital sales platforms. The company is currently focused on streamlining its cost structure and improving its logistics network to support long-term growth.