Overview
- Investors dumped CarMax on Tuesday after its earnings release, with shares down 6.8% premarket and about 13% during the session.
- The retailer reported a $120.7 million GAAP loss after a $141.3 million goodwill impairment, and it beat estimates with $0.34 adjusted EPS and $5.95 billion in revenue.
- Price reductions cut profit per vehicle, with retail gross profit sliding to $2,115 from $2,322 and wholesale dropping to $940 from $1,045 as the company worked to spur sluggish demand.
- CarMax Auto Finance income fell 9.8% to $143.7 million due to smaller loan balances after a $900 million non‑prime securitization and higher credit loss provisions.
- New CEO Keith Barr pledged faster execution and deeper savings, targeting $200 million in annual cuts by fiscal 2027 and planning four stores plus four reconditioning or auction sites next year with about $400 million in capital spending.