CarMax (NYSE:KMX) repoirted its stock slumped Thursday after its quarterly profit and revenue fell well short of estimates. CarMax earned 24 cents per share, compared with a consensus estimate of 70 cents, and its comparable used-vehicle sales were down 22.4% versus FactSet’s consensus forecast of a 16.9% slide.
Net revenues of $6.5 billion, down 23.7% compared with the prior year third quarter.
Total wholesale units sold decreased 36.7%; despite a decrease of $165 per unit from the record prior year third quarter, wholesale gross profit per unit remained strong at $966. Both volume and margins were impacted by steep market depreciation as well as retail selectivity.
The company also bought 238,000 vehicles from consumers and dealers, down 39.8% versus last year’s record third quarter, due to steep market depreciation and our response to deliberately slow buys.
Said CEO Bill Nash “In response to the ongoing pressures across the used car industry, we have taken deliberate steps to support our business for both the near-term and the long-term. We are managing our business prudently, and prioritizing initiatives that reduce costs, unlock operating efficiencies, profitably grow market share and create better experiences for our associates and customers.”
KMX shares tumbled $5.03, or 8.5%, to $54.34.
