Here’s What Pressured CarMax (KMX) in Q3

Core Viewpoint - Diamond Hill Capital's "Select Fund" underperformed the Russell 3000 Index in Q3 2025, returning 4.98% compared to the index's 8% gain [1] Company Summary: CarMax, Inc. (NYSE:KMX) - CarMax, Inc. reported a one-month return of -7.78% and a 52-week decline of 42.66%, closing at $42.46 per share with a market capitalization of $6.235 billion on October 29, 2025 [2] - The company experienced a significant slowdown in used retail vehicle sales and increased credit-loss provisions, attributed to consumers pulling forward purchases ahead of tariffs, leading to a recent industry lull [3] - Despite current challenges, the management team is focused on improving efficiencies and increasing spending on consumer-facing initiatives, indicating potential for long-term market share growth [3] Financial Performance - CarMax reported total sales of $6.6 billion in fiscal Q2 2026, reflecting a 6% decline from the previous year due to lower sales volume [4] - The company was a material detractor to Vulcan Value Partners' performance in Q3 2025, highlighting its struggles in the current market environment [5]