CarMax scaled AI voice technology and agentic AI tools to all inbound calls for customer self-resolution.
“During the second quarter of fiscal 2027, we made progress in each of these pillars. We further strengthened our price competitiveness by continuing to drive efficiencies in reconditioning, dynamically managing gross profit per unit and passing savings on to our customers. In addition, we continued to improve our pricing algorithms to ensure we remain more competitive across demand cycles. We scaled AI voice technology to all of our inbound store and customer experience center calls, enabling customers to self-resolve their inquiries through our agentic AI tools or directly connect to the right associate for help. Additionally, we improved our digital experience by redesigning our car detail page to make it easier for customers to find and buy the right car for them. We increased our CAF Tier 2 penetration and recognized a gain on sale related to our non-prime securitization. We also grew our EPP margins year-over-year as we continued to launch our redesigned offering in additional markets. We continued to take costs out of our reconditioning operations and maintained our approach of passing savings on to customers to support sales. We also took additional steps to solidify achieving our commitment of $200 million in fiscal 2027 exit rate savings in SG&A expense, which will result in approximately $6 million of severance expense in the third quarter of fiscal 2027.”