09:38 AM EDT, 04/11/2024 (MT Newswires) -- CarMax ( KMX ) shares retreated on Thursday as the used-car seller's fiscal fourth-quarter results slid and it pushed out a target for unit sales amid uncertainty regarding market recovery.

In the three months through February, sales and operating revenue was down 1.7% to $5.63 billion, missing the consensus among analysts polled by Capital IQ for $5.81 billion. Earnings per share dropped to $0.32 from $0.44 a year earlier, beneath the Street's view for $0.45 on a GAAP basis.

"We believe vehicle affordability challenges continued to impact our fourth quarter unit sales performance, with ongoing headwinds due to widespread inflationary pressures, higher interest rates, tightened lending standards and low consumer confidence," the company said in a statement on Thursday.

The shares of the company were down almost 10% in Thursday morning trade. Inflation for used cars and trucks has fluctuated in recent months, dipping 1.1% in March after a 0.5% rise in February, the Bureau of Labor Statistics said on Wednesday.

Sales of retail and wholesale used vehicles were down 0.9% in the fiscal fourth quarter to 287,603 units, CarMax ( KMX ) said. Retail used vehicle sales were up 1.3% to 172,057, but revenue was down 0.7% as average selling prices fell by $600 per unit. Wholesale vehicle unit sales fell 4% to 115,546.

CarMax ( KMX ) also bought fewer vehicles from consumers, with units down 14% to 213,000. Dealer purchases were up 45% to 21,000. Income in its auto financing segment rose 19% to $147.3 million as it made a smaller provision for loan losses than a year earlier.

The company pushed out its goal of selling more than 2 million retail and wholesale units annually to between fiscal 2026 and 2030 "due to uncertainty in the timing of market recovery and as we continue to focus on profitable market share growth." The timeline will be updated when there's more visibility into the pace of recovery, CarMax ( KMX ) said. The company said in April 2023 that it planned to sell 2 million to 2.4 million vehicles by fiscal 2026.

In fiscal 2025, CarMax ( KMX ) plans capital spending of $500 million to $550 million as it opens five new stores, a reconditioning facility and an auction site.

Price: 72.9, Change: -6.4, Percent Change: -8.07