CARMAX INC SEC 10-Q Report
CarMax Inc., a leading retailer of used vehicles in the United States, has released its Form 10-Q report for the second quarter of fiscal 2026. The report provides a comprehensive overview of the company's financial and operational performance, highlighting key metrics and strategic initiatives that have shaped the recent quarter.
Financial Highlights
Net Sales and Operating Revenues: CarMax reported net sales and operating revenues of $6,594.7 million, marking a 6.0% decrease from the same period last year. This decline is primarily attributed to a reduction in used vehicle sales.
Gross Profit: The company's gross profit stood at $717.7 million, a 5.6% decrease from the previous year. The gross profit margin was 10.9%.
Net Earnings: Net earnings for the quarter were $95.4 million, reflecting a significant 28.2% decrease from the same period last year. This decline was influenced by lower sales and higher cost of sales.
Net Earnings Per Share: CarMax reported net earnings per share of $0.64, a 24.7% decrease from the same period last year, mirroring the decline in net earnings.
Business Highlights
Revenue Segments: CarMax operates in two primary segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Sales Operations segment encompasses retail sales of used vehicles, wholesale vehicle sales, and related products and services such as extended protection plans (EPP), advertising, and vehicle repair services. The CAF segment provides financing to customers purchasing vehicles from CarMax.
Sales Units: During the first six months of fiscal 2026, CarMax sold 429,939 used vehicles, representing a 1.8% increase compared to the same period in fiscal 2025. Wholesale unit sales were 287,819, a slight decrease of 0.5% from the previous year.
New Product Launches: CarMax introduced the 'Wanna Drive' brand positioning campaign, which emphasizes their omni-channel experience and aims to empower customers to buy their way with clarity, confidence, and control.
Future Outlook: Looking ahead, CarMax plans to leverage data science and AI to enhance digital experiences, improve online vehicle transfer processes, and expand CAF's participation across the credit spectrum. The company also aims to execute a non-prime securitization annually to provide additional funding flexibility.
Operational Efficiency: CarMax is focused on reducing the cost of sales by pursuing efficiency opportunities across its logistics network and reconditioning operations, with anticipated savings of $125 per unit in fiscal 2026.
Omni-Channel Strategy: CarMax's omni-channel experience allows customers to buy vehicles online, in-store, or through a combination of both. The company is committed to providing the best experience across all channels, with a focus on seamless integration of digital and physical experiences.
SEC Filing: CARMAX INC [ KMX ] - 10-Q - Sep. 26, 2025