Carmax third-quarter results fell short of analysts’ expectations, amidst inflationary pressures dampening consumer demand.
The used-car retailer’s earnings fell -85% from a year ago to $0.24 per share in the quarter, missing the $0.70 expectation from Thomson Reuters survey.
Revenue was down -24% year-over-year to $6.51 billion in the quarter, vs. analysts’ expectations of $7.3 billion. Retail used units sold decreased -20.8% to 180,050 in the quarter ending November 30, while same-store used unit sales were down -22.4%. Average selling prices for its used cars were up +1.9% to $28,530.
CarMax CEO Bill Nash indicated that vehicle affordability challenges continued to affect the company’s third quarter unit sales performance amidst widespread inflationary pressures, rising interest rates, and low consumer confidence.
"External title data indicates that we gained market share on a year-to-date basis through October, though we've seen some recent loss of share. We are focused on profitable market share gains that can be sustained for the long-term," CarMax stated.
Citing its quarterly performance and market uncertainties, CarMax has suspended share repurchases.