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CarMax First-Quarter Earnings Fall as Comparable Used Vehicle Sales Turn Negative
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CarMax First-Quarter Earnings Fall as Comparable Used Vehicle Sales Turn Negative
Jun 17, 2026 8:17 AM

10:46 AM EDT, 06/17/2026 (MT Newswires) -- CarMax's ( KMX ) fiscal first-quarter earnings fell year over year on Wednesday as comparable used vehicle sales swung negative.

The used-vehicle retailer's earnings for the quarter ended May 31 decreased to $1.31 per share from $1.38 a year earlier. Total revenue rose 6.2% to $8.01 billion, topping the FactSet-polled consensus of $7.43 billion.

CarMax's ( KMX ) shares declined 7.2% intraday Wednesday, but are up about 25% so far this year.

Comparable store used unit sales decreased 0.8%, compared with an 8.1% rise in the year-ago period. That was worse than Truist Securities' estimate that called for a flat print.

The stock is up about 40% from recent lows, but comparable sales were "still negative despite significant price cuts, and we suspect it will cost (money) to improve the operations/tech, even as CAF (consumer finance) seems like it will be the main driver of earnings this (year)," Truist said in the note. "Thus, while the (quarter) was moderately better, we remain neutral on the stock."

Revenue from retail used vehicle sales increased 4.7% year on year to $6.39 billion, driven by higher selling prices. Wholesale revenue moved up 14% to $1.43 billion amid an 8.4% rise in volume.

Total gross profit declined 4.4% to $854.4 million due to weakness in the retail used vehicle segment.

CarMax ( KMX ) laid out a growth framework that focuses on competitive pricing, an improved customer experience and cost-reduction opportunities. The company said it also plans to grow profitability by "maximizing value across all aspects of our business."

Price: 48.64, Change: -3.47, Percent Change: -6.66

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