Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 67

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7
Chunk 67
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5, reflecting an increase in EPP revenues.  EPP revenues increased 12.4%, largely reflecting increased margins and an increase in retail unit sales, partially offset by decreased penetration.

GROSS PROFIT Years Ended February 28 or 29 (1)(In millions)2025Change2024Change2023Used vehicle gross profit$1,823.2 4.1 %$1,752.0 (5.2)%$1,848.2 Wholesale vehicle gross profit557.6 0.1 %556.8 (5.6)%589.8 Other gross profit517.1 27.9 %404.4 11.7 %362.2 Total$2,897.9 6.8 %$2,713.2 (3.1)%$2,800.2 

(1)Amounts are net of intercompany eliminations.

33

GROSS PROFIT PER UNIT Years Ended February 28 or 29 (1) 202520242023 $ per unit (2)% (3)$ per unit (2)% (3)$ per unit (2)% (3)Used vehicle gross profit$2,311 8.6 $2,288 8.4 $2,288 8.0 Wholesale vehicle gross profit$1,024 12.2 $1,019 11.2 $1,008 9.8 Other gross profit$655 75.4 $528 63.4 $448 54.8 

(1)Amounts are net of intercompany eliminations.  

(2)Calculated as category gross profit divided by its respective units sold, except the other category, which is divided by total used units sold.

(3)Calculated as a percentage of its respective sales or revenue.

Used Vehicle Gross Profit

We target a dollar range of gross profit per used unit sold.  The gross profit dollar target for an individual vehicle is based on a variety of factors, including its probability of sale and its mileage relative to its age; however, it is not primarily based on the vehicle’s selling price.  Our ability to quickly adjust appraisal offers to be consistent with trends in the broader trade-in market and the pace of our inventory turns reduce our exposure to the inherent continual fluctuation in used vehicle values and contribute to our ability to manage gross profit dollars per unit