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CarMax, Inc. is the largest retailer of used vehicles in the United States, operating through two main segments: CarMax Sales Operations and CarMax Auto Finance (CAF) . The company specializes in the retail and wholesale sales of used vehicles, along with related products and services such as extended protection plans and vehicle repair services . CarMax also offers financing options through its CAF segment, which provides competitive financing solely to customers purchasing retail vehicles from CarMax .
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CarMax Sales Operations - Encompasses all aspects of auto merchandising and service operations, including retail sales of used vehicles, wholesale vehicle sales, and related products and services such as extended protection plans, vehicle repair services, and advertising and subscription revenues.
- Retail Sales of Used Vehicles - Offers a wide selection of used vehicles for purchase by consumers.
- Wholesale Vehicle Sales - Facilitates the sale of vehicles to other dealers through auctions.
- Extended Protection Plans (EPPs) - Provides additional coverage options for vehicle protection.
- Vehicle Repair Services - Offers maintenance and repair services for vehicles.
- Advertising and Subscription Revenues - Generates income through advertising and subscription-based services.
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CarMax Auto Finance (CAF) - Provides financing options exclusively to customers buying retail vehicles from CarMax, capturing additional profits and cash flows by offering competitive financing solutions.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
William D. Nash ExecutiveBoard | President, Chief Executive Officer, Director | None | Joined CarMax in 1997; became CEO in 2016; previously held roles in merchandising, HR, and administrative services. | View Report → |
Charles Joseph Wilson Executive | Executive Vice President, Chief Operating Officer | None | Joined CarMax in 1995; promoted to COO in 2022. | |
Darren C. Newberry Executive | Senior Vice President, Store and CEC Execution | None | Senior Vice President responsible for store and customer experience center execution. | |
Diane L. Cafritz Executive | Executive Vice President, Human Resources, General Counsel, Chief Compliance Officer | None | Joined CarMax in 2003; promoted to EVP in 2022; leads HR, legal, and compliance functions. | |
Enrique N. Mayor-Mora Executive | Executive Vice President, Chief Financial Officer | None | CFO of CarMax; oversees financial reporting and compliance; certifications date back to at least 2023. | |
James Lyski Executive | Executive Vice President, Chief Innovation and Strategy Officer | None | Joined CarMax in 2014 as CMO; transitioned to Chief Innovation and Strategy Officer in 2023. | |
Jon G. Daniels Executive | Senior Vice President, CarMax Auto Finance Operations | None | Senior Vice President overseeing CarMax Auto Finance; mentioned in Q3 FY2025 earnings call. | |
Shamim Mohammad Executive | Executive Vice President, Chief Information and Technology Officer | None | Joined CarMax in 2012; promoted to EVP in 2021; oversees IT and technology strategy. | |
David W. McCreight Board | Director | None | Director since 2018; former CEO of Anthropologie; expertise in omnichannel retail strategies. | |
Marcella Shinder Board | Director | Advisory Director at Charlesbank Capital Partners; Founding Member of Brilliant Friends Investing | Director since 2015; expertise in marketing, digital transformation, and advanced technologies. | |
Mark F. O’Neil Board | Director | None | Director since 2019; former CEO of Dealertrack; expertise in automotive retail technology. | |
Mitchell D. Steenrod Board | Director | None | Director since 2011; former CFO of Pilot Travel Centers; brings financial expertise to the Board. | |
Pietro Satriano Board | Director | Director at Metro Inc.; Executive Advisor at JMPS Advisory LLC | Director since 2018; former CEO of US Foods; expertise in technology and e-commerce solutions. | |
Shira Goodman Board | Director | Director at CBRE Group, Inc.; Advisory Director at Charlesbank Capital Partners | Director since 2007; former CEO of Staples; expertise in digital transformation and ESG. | |
Sona Chawla Board | Director | Chief Growth and Innovation Officer at CDW Corporation | Director since 2017; former President of Kohl’s; expertise in technology and digital transformation. | |
Thomas J. Folliard Board | Non-Executive Chair of the Board | Board Member at PulteGroup, Inc. | Former CEO of CarMax (2006-2016); led significant growth during his tenure; now serves as Non-Executive Chair. |
- Your credit penetration remains in the low 70% range, while an online peer has expanded theirs to the mid-80s; what specific constraints are preventing you from increasing your credit penetration to similar levels, and what strategies are you implementing to address this gap?
- With worsening trends in the broader auto loan market and Tier 3 penetration down to about 7%, how are you adjusting your underwriting standards and business planning to mitigate potential risks from a weakening credit environment, and what further cost efficiencies can you realize?
- Given the current headwinds in credit quality and increased loan loss provisions, does it make strategic sense to push forward with your full-spectrum lending initiative now, or should you reconsider its timing to avoid potential negative impacts?
- Can you provide more details on how you are rethinking or retooling your reconditioning operations to improve efficiencies and margins, and what specific actions are being taken to enhance profitability in this area?
- Regarding customers who are not procuring financing through CarMax and instead use third-party lenders or pay cash, what strategies do you have to better capture this higher-end, rate-sensitive customer segment and increase your overall financing penetration?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Edmunds Holding Company | 2021 | CarMax acquired Edmunds Holding Company in 2021 with an implied enterprise value of $404 million using a combination of cash and stock (776,097 shares), following an initial $50 million minority investment that was later remeasured, and the acquisition was completed in June 2021 after being announced in April 2021. This deal was strategically aimed at enhancing CarMax's digital capabilities and reinforcing its position in the used auto ecosystem by integrating Edmunds’ technology, content, and talent. |
Recent press releases and 8-K filings for KMX.
- Earnings per diluted share rose to $0.58, marking an 81.3% increase from the prior year.
- Total revenues reached $6.0 billion, up ~7% year-over-year, driven by strong unit sales and operational efficiencies.
- Achieved a record retail gross profit per used unit of $2,322 alongside consistent double-digit EPS growth.
- Retail used vehicle unit sales increased by 6.2% with wholesale unit sales up by 3.1%, reinforcing robust demand.
- CarMax Auto Finance income climbed 8.2% to $159.3 million, further supporting performance.
- Enhanced digital tools, including an AI-powered virtual assistant and streamlined online appraisal processes, bolstered customer experience and sourcing efficiency.
- A robust share repurchase program saw nearly $99 million repurchased, underscoring strong financial management.