Q4 2024 Carmax Inc Earnings Call Transcript
Key Points
- CarMax Inc (KMX) posted its fifth consecutive quarter of sequential year-over-year retail used unit improvement.
- The company reported growth in total used unit sales and comps.
- CarMax Inc (KMX) delivered strong retail and wholesale gross profit per unit (GPU).
- Used salable inventory units increased more than 10% while holding used total inventory units flat year-over-year.
- CarMax Auto Finance (CAF) income grew significantly, with a substantial reduction in the provision for loan losses year-over-year.
- Affordability of used cars remains a challenge for consumers, potentially impacting demand.
- Total sales of $5.6 billion were down 2% compared to last year, driven by lower retail and wholesale prices and lower wholesale volume.
- Average selling price declined approximately $600 per unit or 2% year-over-year.
- Nationwide share of 0- to 10-year-old used vehicles declined from 4% in calendar '22 to 3.7% in 2023.
- Wholesale unit sales were down 4% versus the fourth quarter last year.
Ladies and gentlemen, thank you for standing by. Welcome to the Q4 Fiscal Year 2024 CarMax Earnings Release Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, David Lowenstein, VP, Investor Relations. Please go ahead.
Thank you, Shelby. Good morning, everyone. Thank you for joining our fiscal 2024 fourth quarter earnings conference call. I'm here today with Bill Nash, our President and CEO; Enrique Mayor-Mora, our Executive Vice President and CFO; and Jon Daniels, our Senior Vice President, CarMax Auto Finance Operations.
Let me remind you our statements today that are not statements of historical fact, including statements regarding the company's future business plans, prospects and financial performance, are forward-looking statements we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our current knowledge,
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