Used unit sales in comparable stores decreased by 6.7% year-over-year. This indicates a slowdown in organic growth.

CarMax opened 5 stores in fiscal year 2024 and anticipates opening 7 locations in fiscal year 2025. This indicates continued growth, but the pace has slowed.

The company continues to invest in its omni-channel platform, with approximately 70% of customers leveraging some or all of the digital capabilities to complete their transactions in fiscal 2024. This indicates a continued focus on adapting to changing consumer preferences.

Selling, general and administrative (SG&A) expenses decreased by 8.1% year-over-year. This indicates improved efficiency in managing operational costs.

Total inventory decreased by 1.3% year-over-year, indicating improved inventory management and alignment with sales trends.

The company has adjusted its long-term growth targets, including extending the timeframe to achieve 2 million combined retail and wholesale units annually to between fiscal 2026 and fiscal 2030. This reflects management's response to market uncertainty.

The 10-K highlights that the automotive retail industry and CarMax's business are sensitive to economic conditions, including recession, inflation, interest rates, and consumer credit availability. These conditions could adversely affect consumer demand for vehicles.

The company acknowledges operating in a highly competitive industry with increasing online presence. Failure to adapt to the increasing use of digital and online tools to market, buy, sell, and finance used vehicles could adversely affect business, sales, and results of operations.

The company acknowledges collecting sensitive confidential information from customers and that a breach of this confidentiality, whether due to a cybersecurity or other incident, could result in harm to customers and damage to the brand.

The company estimates it sold approximately 3.7% of the age 0- to 10-year old vehicles sold on a nationwide basis in calendar 2023, a decrease from 4.0% in calendar 2022. This indicates a slight weakening in market share.

The company believes that CAF's principal competitive advantage is its strategic position as the primary finance source for CarMax customers. This provides a captive financing option, but is subject to competition from other financial institutions.

CarMax emphasizes delivering a customer-driven, omni-channel buying and selling experience as a key strategy to increase market share. This suggests a focus on differentiating through customer experience.

SG&A expenses in fiscal 2024 decreased from the prior year, even when excluding the benefits of this year's legal settlement, indicating improved cost control. The company aims to further improve this ratio.

The company is focusing on production efficiencies to align saleable inventory to sales, indicating an effort to optimize inventory management and reduce waste.

Other gross profit increased 11.7%, primarily driven by a $75.3 million improvement in service department margins. This suggests improved efficiency and cost coverage in service operations.

The company leverages data science, automation, and artificial intelligence to make it easier for retail customers to complete key transaction steps on their own. This indicates a commitment to technological innovation.

Capabilities for Skye, the 24/7 virtual assistant, have been expanded to include managing finance applications, vehicle transfers, appointment reservations and appraisal offers. This demonstrates a focus on leveraging technology to improve customer service and efficiency.

The wholesale auction platform has been modernized to offer new services, including single sign-on, AI-enhanced condition reports, early bidding capabilities and automated bills of sale. This suggests a commitment to improving the wholesale side of the business through technology.

The company resumed share repurchases during the third quarter of fiscal 2024 and intends to modestly accelerate the pace in fiscal 2025. This signals confidence in the company's financial position.

Capital expenditures are expected to total between $500 million and $550 million in fiscal 2025, an increase from $465.3 million in fiscal 2024. This indicates continued investment in the business, primarily related to supporting future growth.

The company's capital allocation strategy focuses on the core business and maintaining financial flexibility. This indicates a conservative approach to managing capital structure.

The company has a company-wide associate training program on diversity and inclusion with a high completion rate. This demonstrates a commitment to fostering a diverse and inclusive work environment.

The company has revamped its external supplier inclusion webpage to identify suppliers for specific procurement opportunities. This indicates a commitment to diversifying the supplier base.

The company acknowledges that failure to meet environmental goals or satisfy disclosure requirements could adversely affect business, sales, and results of operations. This highlights potential risks related to ESG performance.

The company believes persistent vehicle affordability challenges continued to impact used unit sales performance in fiscal 2024, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightened lending standards and prolonged low consumer confidence.

CarMax has experienced, and may continue to experience, steep market depreciation of its vehicle inventory due to changes in economic conditions, which could result in reduced retail and wholesale margins.

Online retail sales, as defined previously, accounted for 14% of used unit sales in fiscal 2024, compared with 12% in fiscal 2023, showing the growth of online sales.