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CarMax, Inc. (KMX) is the leading used car retailer in the United States and the rst one to offer high quality used vehicles at low, xed prices using a customer-friendly sales process in a modern and attractive sales facility. It has two business segments: CarMax Sales Operations and CarMax Auto Finance (CAF). CarMax Sales Operations sells used vehicles through a network of about 240 retail stores across the country, while CAF provides financing options to customers who purchase vehicles from CarMax.

CarMax has a resilient business model that can adapt to the changing conditions of the used car industry. In fiscal year 2023, CarMax reported net revenues of $30 billion, down 23.7% from the previous year, due to the ongoing challenges in the used car industry caused by supply chain disruptions, inventory shortages, and market depreciation. However, CarMax maintained strong gross profit margins on both retail and wholesale units sold and increased its online retail sales to 12% of total retail unit sales. CarMax also took deliberate actions to reduce costs, increase the mix of older retail vehicles sold, increase CAF rates, reduce planned capital expenditures, and prudently manage its capital structure.