CarMax, Inc. ( KMX ) shares have been a very poor performer over the past year, losing about half of their value. The used car retailer has struggled with weak sales as lower-income consumers face affordability pressure, leading to the departure of its CEO. WhileOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an ...

CarMax, Inc. ( KMX ) shares have been a very poor performer over the past year, losing about half of their value. The used car retailer has struggled with weak sales as lower-income consumers face affordability pressure, leading to the departure of its CEO. WhileOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an ...

CarMax (KMX) reported $5.79 billion in revenue for the quarter ended November 2025, representing a year-over-year decline of 6.9%. EPS of $0.51 for the same period compares to $0.81 a year ago.The reported revenue represents a surprise of +1.18% over the Zacks Consensus Estimate of $5.73 billion. With the consensus EPS estimate being $0.32, the EPS surprise was +59.38%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

SAN FRANCISCO, Dec. 18, 2025 (GLOBE NEWSWIRE) -- National investor rights law firm Hagens Berman reminds investors that the Lead Plaintiff Deadline in the securities class action lawsuit against CarMax, Inc. (NYSE: KMX) -- January 2, 2026 – is rapidly approaching. The lawsuit alleges that CarMax and certain of its executives misled investors about the true stability and growth prospects of its core business, leading to two separate and massive stock crashes. Hagens Berman urges investors who suffered substa ...

Financial Data and Key Metrics Changes - Total sales for the third quarter were $5.8 billion, down 6.9% year-over-year, reflecting lower volume [12] - Retail unit sales declined by 8%, with used unit comps down 9% [12] - Average selling price increased to $26,400, a year-over-year increase of $230 per unit [13] - Net earnings per diluted share were $0.43, down from $0.81 a year ago, impacted by $0.08 of restructuring expenses [14] - Total gross profit was $590 million, down 13% from the previous year [15] - SG&A expenses were $581 million, up 1% from the prior year, driven by marketing investments and restructuring expenses [15] Business Line Data and Key Metrics Changes - Used retail margin decreased by 11% to $379 million, with profit per used unit at $2,235, down approximately $70 from last year's record high [15] - Wholesale vehicle margin decreased by 17% to $115 million, with gross profit per unit declining by approximately $120 year-over-year [15] - CarMax Auto Finance income increased by 9% to $175 million, supported by underwriting and pricing adjustments [19] Market Data and Key Metrics Changes - The company purchased approximately 238,000 vehicles during the quarter, down 12% from last year [14] - The average wholesale selling price declined by $40 per unit to $8,100 [13] Company Strategy and Development Direction - The company is focused on narrowing the price gap between its offerings and the marketplace, lowering margins, and increasing marketing spend [8][10] - A renewed emphasis on customer experience and digital selling capabilities is being prioritized to drive conversion and improve customer satisfaction [9][10] - The company aims to reduce SG&A expenses by at least $150 million by the end of fiscal year 2027 [16] - The board is actively searching for a permanent CEO who can drive sales and strengthen the brand [5][6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that recent results have been unacceptable and emphasized the need for immediate change [4][5] - There is optimism that immediate pricing and marketing actions will improve sales performance, although they may pressure earnings in the near term [11] - The company believes it has the necessary attributes for a successful turnaround and is committed to strengthening performance [11][23] Other Important Information - The company is undergoing leadership changes, with an interim CEO and chair in place while searching for a permanent CEO [4][5] - The company is committed to transparency about its progress and performance [23] Q&A Session Summary Question: What is the magnitude of the GPU reset expected in the February quarter? - Management indicated that margin reductions will be meaningful and are optimistic about improving retail sales trends [28][29] Question: Are there specific customer cohorts where CarMax has become less competitive? - Management noted a loss of volume in the higher FICO segments and is focused on recapturing those customers [30][31] Question: Will CarMax adjust interest rates to be more competitive? - Management stated they monitor market rates and will adjust accordingly, focusing on the overall offering rather than just interest rates [32][33] Question: What is the baseline SG&A from which the company expects to cut $150 million? - The baseline SG&A is approximately $2.5 billion, with reductions compared to last year [46][47] Question: What is the strategy for reducing COGS? - The company is focused on COGS reduction through initiatives like regional reconditioning centers and improved parts selection tools [78][79] Question: How is the board approaching the search for a new CEO? - The board is looking for a leader with experience in complex businesses and digital transformation, with urgency in the search process [96]

Let's begin with this market reaction to CPI shelter uh carrying an awful lot of water which is kind of a consensus view Jim going into 26. >> Yes, you got to go with what Lenar is saying too. Giant home builder uh dovetales with this.You go to you go to Gemini uh you put in Lenar uh you put in home prices LAR and you'll see uh way back all the way back to 2019 before there was inflation you know but this is the 40% inflation in housing David. Yeah. >> Done.Okay. See you then you look at CarMax you look at ...

Core Insights - The automotive retail industry is experiencing a digital transformation, with major dealership groups investing in cloud-based platforms to enhance operational efficiency [2] Group 1: Company Performance - Asbury Automotive operates 175 new vehicle dealerships and 39 collision centers, generating $4.80 billion in revenue during Q3 2025 [3] - AutoNation, the largest automotive retailer in the U.S., reported $27.92 billion in trailing twelve-month revenue [4] - Lithia Motors, the second-largest retailer, achieved $37.61 billion in revenue [5] Group 2: Digital Initiatives - Asbury is implementing Tekion's cloud-based dealership management system across its network, with a focus on improving operational efficiency [3][7] - AutoNation has invested in digital retail innovations, allowing customers to complete approximately 80% of the car-buying process online [4] - Lithia Motors has developed its Driveway digital platform, averaging 1.3 million unique visitors per month in Q2 2025 [5] Group 3: Financial Metrics - Asbury posted a 13% revenue growth year-over-year in Q3, outperforming AutoNation's 6.9% and Lithia's 4.9% [6][8] - Asbury's profit margin stands at 3.15%, exceeding AutoNation's 2.38% despite AutoNation's larger scale [6] - Asbury trades at an 8x P/E ratio, compared to AutoNation's 12x and Lithia's 10x, reflecting its faster growth [8]

Leadership Transition - David McCreight was announced as Interim President & CEO, and Thomas Folliard as Interim Executive Chair, effective December 1, 2025[6] - Former Chief Executive Officer, Bill Nash, stepped down from his position and as a member of the Board effective December 1, 2025[9] Q3 2026 Financial Performance - Net earnings per share decreased by 24.7% year-over-year to $0.64[24, 27] - Total gross profit decreased by 12.9% year-over-year to $590.0 million[24] - SG&A expense increased by 1.0% year-over-year to $581.4 million[24] - CarMax Auto Finance (CAF) income increased by 9.3% year-over-year to $174.7 million[27] Sales Performance - Total vehicles bought decreased by 11.7% year-over-year to 238,000 units[24] - Retail used unit sales decreased by 6.2% year-over-year[24] - Wholesale unit sales decreased by 9.0% year-over-year[24] Capital Allocation - The company repurchased $201.6 million in shares of common stock[17]

Core Insights - CarMax reported a decline in third-quarter revenue and profit due to weaker demand and falling prices for used vehicles in the U.S. [1] Company Summary - The company experienced a drop in revenue and profit in the third quarter [1] - The decline is attributed to reduced demand for used vehicles [1] - Falling prices of used vehicles in the U.S. have negatively impacted the company's financial performance [1]

Core Insights - The automotive retail industry is experiencing a significant digital transformation as dealership groups strive to modernize their operations through the adoption of cloud-based platforms [1] Industry Summary - Dealership groups are actively engaged in modernizing their operations to keep pace with the evolving digital landscape [1]