Used unit sales increased to 211,020 units for the three months ended August 31, 2024, compared to 200,825 units for the same period in 2023, representing an increase of 5.1%. This increase is primarily due to an increase in used unit sales.

Wholesale unit sales decreased to 141,458 units for the three months ended August 31, 2024, compared to 141,837 units for the same period in 2023, representing a decrease of 0.3%. This decrease is primarily due to a decrease in wholesale vehicle sales.

The company is focusing on increasing market share by 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 to 80.3% for the three months ended August 31, 2024, compared to 84.1% for the same period in 2023, representing a decrease of 3.8%. This decrease is primarily due to an increase in gross profit.

The company is focused on driving down their cost of sales by pursuing incremental efficiency opportunities that they have identified across their logistics network and reconditioning operations. For example, they recently conducted a comprehensive review of their logistics operations and determined that centralizing some key functions will help them best leverage their network.

The company is focused on refining the customer experience and further differentiating their business by completing the nationwide rollout of their new order processing system across our stores and Customer Experience Centers, focusing on customer shopping accounts, and developing a new knowledge management system.

The company is exposed to risks and uncertainties that could cause actual results to differ materially from anticipated results, including changes in the competitive landscape, changes in general or regional U.S. economic conditions, and changes in the availability or cost of capital and working capital financing.

The company is exposed to risks related to geographic and sales growth, including the inability to effectively manage our growth, the loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs, and factors related to the regulatory and legislative environment in which they operate.

The company is exposed to risks related to the regulatory and legislative environment in which they operate, the effect of various litigation matters, and the volatility in the market price for their common stock.

The company is focused 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.

The company is utilizing advertising to drive customer growth, educate customers about their omni-channel platform and to differentiate and elevate their brand.

The company is focused on becoming the leading retailer of used EVs 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.

The company is focused on driving down their cost of sales by pursuing incremental efficiency opportunities that they have identified across their logistics network and reconditioning operations. For example, they recently conducted a comprehensive review of their logistics operations and determined that centralizing some key functions will help them best leverage their network.

The company believes that these initiatives focused on their logistics network and reconditioning operations will drive savings of approximately $200 per retail unit over the next year or two.

The company is improving efficiency in their stores and CECs and their logistics and reconditioning operations to reduce waste.

The company is leveraging data and advanced analytics to continuously improve the customer experience as well as their processes and systems.

The company is developing a new knowledge management system that they are testing in their CECs, which leverages generative AI to empower associates with instant access to the information they need. They believe this will enable their CECs to be more effective and efficient, and they plan to launch the bot across all CECs later this year.

The company released an enhancement to their finance-based shopping platform that seamlessly incorporates existing instant appraisal offers into their prequalification offering.

Given their recent performance and continued market uncertainties, the company is taking a conservative approach to their capital structure in order to maintain the flexibility that allows them to efficiently access the capital markets for both CAF and CarMax as a whole.

The company has taken steps to better align their expenses to sales as well as slowed the rate of their store growth.

During the first half of fiscal 2025, the company accelerated the pace of their share repurchases above the pace that they implemented in the third quarter of fiscal 2024.

The provided 10-Q filing does not contain any specific information or discussion regarding environmental, social, or governance (ESG) initiatives undertaken by the company.

The company is exposed to changes in the competitive landscape and/or their failure to successfully adjust to such changes.

The company is exposed to changes in general or regional U.S. economic conditions, including inflationary pressures, fluctuating interest rates and the potential impact of international events.

The company is exposed to significant changes in prices of new and used vehicles.