Overview

• CarMax posted EPS of $0.64 on $6.594 billion in revenue, missing estimates that clustered around $1.03–$1.09 and about $7.0 billion.
• Retail used unit sales fell 5.4% with comparable-store units down 6.3%, while total retail and wholesale units declined 4.1%.
• Net income dropped roughly 28% to $95.4 million and total gross profit slid 5.6% to $717.7 million as volumes contracted.
• CarMax Auto Finance income fell to $102.6 million as loan-loss provisions rose to $142.2 million, reflecting higher lifetime-loss expectations on older vintages.
• Management outlined at least $150 million in SG&A cuts over 18 months and disclosed $180 million of Q2 buybacks, while analysts trimmed price targets and, in some cases, downgraded the stock.