Used unit sales decreased to 174,766 units in Q3 2024 from 180,050 units in Q3 2023, a 2.9% decrease. This indicates a slowdown in retail sales volume, impacting overall revenue.

Wholesale unit sales increased to 127,900 units in Q3 2024 from 118,757 units in Q3 2023, a 7.7% increase. This growth in wholesale sales partially offsets the decline in retail sales.

The company is slowing its planned store growth to provide more capital flexibility. They opened one store during the first nine months of fiscal 2024 and plan to open four more and one reconditioning center during the remainder of the fiscal year.

Selling, general, and administrative (SG&A) expenses decreased to $560.0 million in Q3 2024 from $591.7 million in Q3 2023, a 5.4% decrease. This reflects management's cost management efforts and improved efficiency.

Management is focusing on production efficiencies to align saleable inventory to sales. This suggests an effort to optimize inventory management and reduce carrying costs.

Management is tightening CarMax Auto Finance's (CAF) underwriting standards. This indicates a proactive approach to managing credit risk and improving loan portfolio quality.

The document states that 'persistent vehicle affordability challenges continued to impact our unit sales performance, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightened lending standards and prolonged low consumer confidence'.

The document states that 'Our wholesale auction prices usually reflect trends in the general wholesale market for the types of vehicles we sell'.

The document states that 'CAF auto loans receivable are primarily funded through our warehouse facilities and asset-backed term funding transactions...we would not expect to be able to access the assets of our non-recourse funding vehicles, even in insolvency, receivership or conservatorship proceedings'.

External title data shows that our market share for the first ten months of calendar 2023 improved compared to our market share for the second half of calendar 2022.

Market share for the month of October 2023, the latest period for which title data is available, improved year-over-year for the first time this calendar year.

Our strategy to continue to increase our market share includes focusing on delivering a customer-driven, omni-channel buying and selling experience that is a unique and powerful integration of our in-store and online capabilities.

SG&A as a % of gross profit decreased from 102.6% to 91.4%. This indicates improved cost management relative to revenue generation.

Our strategy to continue to increase our market share includes improving efficiency in our stores and CECs and our logistics operations to reduce waste.

Other overhead costs decreased by 13.9%. This indicates improved cost management relative to revenue generation.

Our strategy to continue to increase our market share includes leveraging data and advanced analytics to continuously improve the customer experience as well as our processes and systems.

Our strategy to continue to increase our market share includes becoming the leading retailer of used electric vehicles (“EV”) in the market.

In support of this goal, Edmunds has launched several research and buying tools, which include providing data on the health and range of EV batteries as well as an evaluation of potential federal and state tax credits and incentives.

We resumed our share repurchases during the third quarter of fiscal 2024 after a pause initiated during the third quarter of the prior fiscal year.

We slowed our planned store growth to provide more capital flexibility. This is a conservative approach to capital structure.

We currently estimate capital expenditures will total approximately $450 million in fiscal 2024. Planned capital spending in fiscal 2024 largely reflects spending to support our future long-term growth, including investments in auction, sales and production facilities, as well as our new stores.

In support of this goal, Edmunds has launched several research and buying tools, which include providing data on the health and range of EV batteries as well as an evaluation of potential federal and state tax credits and incentives. This will support our business and help CarMax be part of the solution to reduce emissions.

The document states that 'persistent vehicle affordability challenges continued to impact our unit sales performance, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightened lending standards and prolonged low consumer confidence'.

The document states that 'Our wholesale auction prices usually reflect trends in the general wholesale market for the types of vehicles we sell'.