On this page of StockholderLetter.com we present the latest annual shareholder letter from CARMAX INC — ticker symbol KMX. Reading current and past KMX letters to shareholders can bring important insights into the investment thesis.

 •  5/9/2024 Letter Continued (Full PDF)
 •  5/11/2023 KMX Stockholder Letter
 •  More "Auto Dealerships" Category Stockholder Letters
 •  KMX Benford's Law Stock Score = 100

KMX Shareholder/Stockholder Letter Transcript:

A N N UA L R E P O RT F I S CA L Y E A R 2 0 2 4

The Nation   s Largest Used Car Retailer
770 K
550 K
1.1M
CARS RETAILED
IN FY24
CARS WHOLESALED
IN FY24
APPRAISAL
PURCHASES
IN FY24
$8.3 B
34M
CAF ORIGINATIONS
IN FY24
AVERAGE MONTHLY
WEB VISITS
20YEARS
$100 M+
ON THE
FORTUNE 100
BEST COMPANIES
TO WORK FOR   
LIST
GIVEN BACK
TO HELP OUR
COMMUNITIES
THRIVE
2M
VEHICLES
MOVED
245
STORE LOCATIONS
NATIONWIDE
CARMAX MARKETS
O
Existing Television Markets
as of April 15, 2024
(Size of markers is based on
number of CarMax stores in
each market)


2024 Le  er to Shareholders 

Dear Fellow Shareholders: 
This year CarMax celebrated its 30  year anniversary, and I   m so proud of what we have been able to 
accomplish in that   me. Although   scal 2024 was a challenging year for the used car industry, we 
focused on controlling what we could control while at the same   me advancing our strategic priori  es.  
We con  nued to innovate and invest to further improve the associate and customer experience, and I 
am proud to highlight that this marks the 20th consecu  ve year we have been recognized as one of 
Fortune Magazine   s 100 Best Companies To Work For  . This is a testament to our associates and the 
culture they have created.   
While a  ordability of used cars remains a challenge for consumers, our core opera  onal founda  on is 
strong, and I believe we are well posi  oned for the future. This   scal year we sold approximately 1.3 
million vehicles through our retail and wholesale channels. We also bought 1.1 million vehicles from 
consumers and dealers. Across our diversi  ed business model incorpora  ng retail, wholesale,   nance, 
and Edmunds, we made a number of enhancements and expanded our ability to source, sell, and   nance 
vehicles.   
   In addi  on to improving
the experience for our
customers, this past year
we also focused on
reducing costs and
unlocking e  ciencies
throughout the business.   
In addition to improving the experience for our customers, 
this past year we also focused on reducing costs and 
unlocking efficiencies throughout the business. We were 
highly disciplined regarding our spend and investment levels 
and effectively managed SG&A without sacrificing the high 
level of quality service that our customers and associates 
expect from CarMax.   
Retail:  We con  nued to improve our omni  channel 
experience by u  lizing technology to further empower 
customers in their purchasing journey. For example, we 
leveraged data science, automa  on, and AI to make it even 
easier for customers to complete key transac  on steps, like vehicle transfers, on their own. We also 
enhanced digital checkout func  onality for appraisal customers, enabling them to submit their 
documents remotely and unlocking their ability to par  cipate in our 30  minute Express Drop O   
experience. This past year approximately 70% of our customers used one or more of our digital 
capabili  es and we are highly focused on crea  ng and implemen  ng new features that will ensure 
CarMax provides the most customer  centric experience in the industry. 
Finance:  CarMax Auto Finance (CAF) performed well despite challenges posed by the persistence of 
higher interest rates, used vehicle a  ordability, and overall household economic pressures. I am very 
pleased with the success of our online mul    lender pre  quali  ca  on tool, Finance Based Shopping (FBS), 
which allows customers to request   nancing approval online with no impact to credit scores and receive 
their decisions within minutes, empowering them to conveniently shop with personalized terms across 
our na  onwide inventory. This seamlessly provides consumers with the informa  on and capabili  es they 

need to shop for   nancing that best meets their budget, further di  eren  a  ng CarMax   s customer  
centric   nancing experience. Today, over 80% of our customers that start the   nancing process u  lize 
this best  in  class pre  quali  ca  on product.  
We have also established an online checkout and purchasing experience which integrates our   nancing 
process, allowing eligible customers to apply and accept   nance o  ers online without the assistance of 
an associate. This past year we also added new lenders to the pre  quali  ca  on pla  orm, expanding the 
breadth and depth of o  ers available to our customers.   
Wholesale:  We deployed technology to modernize our wholesale auc  on pla  orm to o  er new services 
including single sign  on across all of our systems, AI enhanced condi  on reports, early bidding 
capabili  es, and automated bills of sale. We also saw a 26% increase in buys from dealers through our 
MaxO  er product, which is a key component of our sourcing strategy and provides pro  table 
incremental volume. I am pleased with how we con  nue to strengthen this important part of our 
business and we will con  nue to pursue strategies to expand our market reach, improve opera  onal 
e  ciencies, and enhance the auc  on experience.   
Edmunds: Edmunds con  nues to be a vital component of achieving our strategic priori  es, and we are 
leveraging both CarMax   s and Edmunds    industry  leading capabili  es to the bene  t of both companies.  
Over the past year, a key focus area was consumer educa  on on Electric Vehicles (EVs).  CarMax   s goal is 
to be the number one seller of used EVs in the country, and although EVs currently represent roughly 1% 
of our overall sales, we are certain that will grow signi  cantly over   me. We know that some consumers 
feel as if they do not have su  cient informa  on about EVs: speci  c models, ba  ery life, and state and 
federal tax credits, for example. Therefore, Edmunds has created the EV Hub     an online resource that 
consolidates all the informa  on that a poten  al EV customer would need to make an informed decision. 
The site will be con  nuously updated to provide leading  edge informa  on.   
   I believe that the future is
bright for CarMax. Our
core opera  ons are strong,
and we are well posi  oned
to drive future growth.   
In addi  on to all these accomplishments, we are 
con  nuing to advance our Corporate Social Responsibility 
(CSR) and Environmental, Social, and Governance e  orts to 
ensure that CarMax remains a good corporate ci  zen, a 
posi  ve contributor to the communi  es where we live and 
work, and an industry leader on environmental issues. 
In FY24, The CarMax Founda  on and KABOOM! celebrated 
the construc  on of our 100th playground, an 
accomplishment re  ec  ng 13 years of partnership. Addi  onally, this year we enhanced our partnership 
with Points of Light, a leading volunteer  mobilizing nonpro  t, to o  er our associates more innova  ve 
and impac  ul ways to support local communi  es. This year marks another landmark for CarMax and The 
CarMax Founda  on, as together we have now donated more than $100 million to promote the growth 
and wellbeing of our local communi  es since 2003.   
With regard to sustainability, the strategy that we approved in FY23 is bearing fruit. I   m pleased that in 
2023, CarMax was named one of the top 30 retailers of the Environmental Protec  on Agency   s Green 
Power Partnership. Renewable electricity accounts for 41.25% of our total electricity consumed, 
represen  ng a 16% increase from last year. We introduced our   rst all  electric semi  truck into CarMax   s 
logis  cs   eet.  We also paved the way for increased EV sales with a cross  func  onal innova  on team that 
has established test sites for new and exis  ng EV capabili  es. I encourage you to review our upcoming 
2024 Responsibility Report for more details on the progress we are making. 

All of CarMax   s success is made possible by our talented and dedicated associates. As men  oned above, 
for 20 years in a row CarMax has been named one of Fortune's 100 Best Companies to Work For.  With 
empowering and suppor  ng our associates in mind, fostering diversity, inclusion, and belonging has 
remained a central focus throughout the past year. I   rmly believe that our constant focus on suppor  ng 
our workplace culture is why we have con  nued to grow over our 30 years in business.   
To our associates, thank you for everything you do to make us a great company and create an 
excep  onal workplace. You are cri  cal to our long  term success.  
I would also like to thank our shareholders for your con  nued support and interest in CarMax. We 
appreciate your trust and con  dence as we work through today   s challenges and advance toward our 
long  term goals.   
Looking ahead, I am encouraged by the improvements we are driving across our business, and I am 
excited about our focus areas for   scal 2025. I believe that the future is bright for CarMax. Our core 
opera  ons are strong, and we are well posi  oned to drive future growth.   
Bill Nash 
President and Chief Executive Officer 
April 15, 2024 



 5/9/2024 Letter Continued (Full PDF)