NEW YORK, Oct. 06, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into CarMax, Inc. (NYSE: KMX) for potential violations of the federal securities laws. If you invested in CarMax, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/carmax-inc-class-action. Why Is CarMax being Investigated?CarMax sells used cars. During the relevant period, the Company touted the strong and sustainable demand for its cars, d ...

By Ju-min Park INCHEON, South Korea (Reuters) -From the muddy grounds of a former amusement park on South Korea's coast, tens of thousands of vehicles are being packed for shipment overseas as booming used car exports help to mitigate the impact of U.S. tariffs on new car sales. Soaked in sweat from the outdoor heat, workers are loading and strapping cars into containers around the clock for shipment from the makeshift facilities at South Korea's largest used car export hub in Incheon, west of Seoul. ...

About a quarter century ago, Amazon said it wanted to sell anything and everything a person would want to buy online. Since then, revenues have grown 38,000% every time it sells a new product. Even veteran rivals fear getting Amazon.I would never bet against Amazon. They effectively have unlimited resources. Up until recently, one of the very few areas Amazon wasn't disrupting cars.But now it is making moves. The latest deal is to help sell used cars owned by the rental company Hertz. It could be a boon for ...

Financial Data and Key Metrics Changes - Retail transaction volume reached 10,385 units, up 154% year-over-year and 38% quarter-over-quarter, indicating strong growth [4][13] - Retail revenue totaled RMB 610 million, an increase of 87% year-over-year and 31% quarter-over-quarter [14] - Gross margin for the quarter was 5.2%, down from 6.4% a year ago and 7% in the prior quarter, primarily due to price competition in the new car segment [16] - Adjusted EBITDA loss was RMB 16.5 million, a 51% reduction year-over-year [17] - For the third quarter, retail transaction volume is expected to be between 13,500 and 14,000 units, with total revenue projected between RMB 830 million and RMB 860 million [18] Business Line Data and Key Metrics Changes - Retail revenue growth was driven by a shift towards a more affordable inventory mix, with the average selling price (ASP) for retail vehicles at RMB 59,000, down from RMB 62,000 in the prior quarter [14] - Wholesale transaction volume was 1,221 units, representing a 19% decrease year-over-year but a 70% increase quarter-over-quarter [15] Market Data and Key Metrics Changes - The used car market in China has been affected by aggressive price competition in the new car segment, but recent government policies have moderated this competition [10] - The Zhengzhou superstore opened in a major transportation hub with a population of over 13 million, enhancing market presence in Henan Province [9] Company Strategy and Development Direction - The company is focused on expanding its superstore model, with the recent opening of the Zhengzhou superstore being part of a strategic plan to strengthen market presence [9][10] - The integration of AI technologies into business operations is being explored to enhance efficiency and scalability [8] - The company emphasizes careful planning for new store openings to balance profitability pressures with expansion needs [22] Management's Comments on Operating Environment and Future Outlook - Management expects retail transaction volume to maintain strong growth, projecting over 120% year-over-year growth for the third quarter and approximately 130% for the full year 2025 [10][18] - The company is confident in its ability to raise sufficient capital to support its expansion plans, given its consistent growth and early signs of recovery in capital markets [25] Other Important Information - The Wuhan superstore has shown rapid growth and operational maturity, with a significant reduction in startup losses compared to other locations [6][10] - The company has established a standardized management and operating system to facilitate the rapid ramp-up of new locations [5][7] Q&A Session Summary Question: How does the company balance short-term profitability pressures with expansion needs? - Management emphasized that expansion is carefully planned and that they focus on raising standardization and efficiency to mitigate early-stage cost pressures [22][24] Question: What measures were taken in Wuhan to achieve faster ramp-up compared to other locations? - The CEO highlighted the maturity of the digital management system and standardized business processes as key factors in the successful ramp-up of the Wuhan superstore [27][30] Question: How does management view the competitive landscape in Zhengzhou? - Management acknowledged the intense competition but expressed confidence in their differentiated superstore model and the ability to replicate success from Wuhan [32][35]

CarMax Inc (NYSE: KMX) posted weaker-than-expected second-quarter results on Thursday.The used-car retail giant reported second-quarter earnings per share of 64 cents, missing the analyst consensus estimate of $1.09. Quarterly sales of $6.594 billion (down 6% year over year) missed the Street view of $7.024 billion.The company bought 293,000 vehicles in total in the second quarter, a 2.4% decrease. Of these, 262,000 came from consumers (down 2.7%) and 31,000 from dealers (up 0.2%)."While this was a challeng ...

Key Takeaways CarMax benefits from its nationwide footprint, reconditioning centers, and logistics network.Acquisition of Edmunds and EV battery insights via Recurrent boost digital and EV market position.CarMax faces tariff risks, a stretched balance sheet, and stiff competition from online rivals.CarMax, Inc. (KMX) , the largest retailer of used vehicles in the United States, is set to gain from its extensive footprint, strategic buyout and investor-friendly moves. However, reciprocal tariffs and a stretc ...

CarMax TodayKMXCarMax$45.03 -0.57 (-1.25%) 52-Week Range$42.75▼$91.25P/E Ratio12.40Price Target$69.67Add to WatchlistCarmax's NYSE: KMX share price fell 25% following the Q2 earnings release, hitting rock bottom in the process. Rock bottom aligns with the COVID-19-induced lows of 2020, a launchpad for share prices five years ago and one that will pay off again in the not-too-distant future.  The question is how long the stock price slump will last, and it could last for a few more quarters. The company rep ...

Core Insights - Uxin Limited, a leading used car retailer in China, is set to open a new used car superstore in Zhengzhou, Henan Province on September 27, 2025, marking its fourth superstore launch in major Chinese cities [1][4]. Group 1: Superstore Details - The Zhengzhou superstore will cover approximately 150,000 square meters and will feature one of China's largest used car showrooms along with an in-house reconditioning facility [2]. - The facility is designed to display and sell up to 5,000 vehicles, showcasing Uxin's ability to replicate and scale its business model effectively [2][4]. Group 2: Market Context - Zhengzhou, the capital of Henan Province, has a resident population exceeding 13 million and over 5 million registered vehicles, ranking among the top ten cities in China for used car transactions [3]. - The city serves as a key transportation hub in central China, providing a strong foundation for the operation of a large-scale used car superstore [3]. Group 3: Strategic Implications - The opening of the Zhengzhou superstore is expected to enhance Uxin's market penetration in central China and provide a wider selection of high-quality vehicles and professional services to regional consumers [4]. - The continued rollout of new superstores is anticipated to be a significant growth driver for Uxin's sales volume and financial performance in the coming years [4]. Group 4: Company Overview - Uxin is committed to transforming the used car industry in China through advanced production, new retail experiences, and digital empowerment, offering high-quality vehicles and superior after-sales services [5]. - The company operates under an omni-channel strategy, leveraging its online platform and offline superstores with inventory capacities ranging from 2,000 to 8,000 vehicles [5].

Core Insights - CarMax reported earnings per share (EPS) of $0.64, which was below the estimated $1.03, and revenue of approximately $6.59 billion, falling short of the expected $7.02 billion, indicating challenges in the current market environment [2][6] - The company experienced a decline in used-car sales, with retail used unit sales decreasing by 5.4% and comparable store used unit sales falling by 6.3%, which significantly impacted its stock value and financial performance [3][6] - Despite the decrease in sales volume, CarMax maintained solid unit margins, with a gross profit per retail used unit of $2,216 and $993 per wholesale unit, indicating profitability on a per-unit basis [4][6] Financial Metrics - CarMax has a price-to-earnings (P/E) ratio of approximately 15.54 and a price-to-sales ratio of about 0.32, reflecting its market valuation [5] - The enterprise value to sales ratio is around 0.98, and the enterprise value to operating cash flow ratio is approximately 25.17, indicating the company's financial health [5] - The debt-to-equity ratio is about 2.85, suggesting significant financial leverage, but the company maintains a strong liquidity position with a current ratio of approximately 2.39, allowing it to cover short-term liabilities [5]

Financial Data and Key Metrics Changes - The second quarter net earnings per diluted share was $0.64, down from $0.85 a year ago, primarily due to lower volume and a CAF loss provision adjustment [17][22] - Total gross profit was $718 million, a decrease of 6% from the previous year's second quarter [17] - SG&A expenses for the second quarter were $601 million, down 2% from the prior year, driven primarily by lower stock-based compensation [18][20] Business Line Data and Key Metrics Changes - Total sales for the quarter were $6.6 billion, down 6% compared to last year, reflecting lower volume [8] - Retail unit sales declined by 5.4%, with used unit comps down 6.3% [8] - Wholesale unit sales decreased by 2.2% year-over-year, while average wholesale selling price increased by approximately $125 per unit to $7,900 [9] Market Data and Key Metrics Changes - The average selling price for used vehicles was $26,000, a year-over-year decrease of approximately $250 per unit [9] - The retail gross profit per used unit was $2,216, in line with historical averages [18] - The weighted average contract rate charged to new customers was 11.2%, down from 11.4% in the previous quarter [13] Company Strategy and Development Direction - The company is focused on driving sales, gaining market share, and delivering significant year-over-year earnings growth [5] - Key priorities include maintaining competitive prices, enhancing consumer awareness of their differentiated experience, and delivering SG&A reductions of at least $150 million over the next 18 months [6][7] - The launch of the "Wanna Drive" brand campaign aims to highlight the company's unique omnichannel experience [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that while second quarter results fell short of expectations, they remain confident in their strategy and earnings model, which is expected to produce high EPS growth with mid-single-digit retail unit growth [5][21] - There is an expectation of increased marketing spend in the back half of the year to support the new brand positioning [21] - Management acknowledged that consumer sentiment is currently low, particularly among mid to high FICO customers, which may impact sales [72] Other Important Information - The company purchased approximately 293,000 vehicles during the quarter, down 2% from last year [9] - The net promoter score is the highest since the rollout of digital capabilities, indicating high customer satisfaction [10] - The company is committed to further reducing SG&A by leveraging technology and operational efficiencies [20] Q&A Session Summary Question: Impact of pull forward in demand on used unit sales - Management indicated that the most disruptive factor was the depreciation of inventory, which impacted pricing competitiveness and sales [27][28] Question: Pricing strategy and market competitiveness - Management acknowledged the need to be more competitive with pricing and emphasized the importance of being nimble in response to market conditions [31][32] Question: Update on CarMax Auto Finance (CAF) income expectations - Management revised expectations for CAF income to be flat to slightly down year-over-year due to a larger provision impact this quarter [37][38] Question: Areas of cost reduction in SG&A - Management clarified that cost reductions will not impact growth strategy and will be reinvested in areas that drive sales, such as marketing [42][46] Question: Consumer sentiment and market conditions - Management noted that consumers, especially those with mid to high FICO scores, are currently more cautious, impacting app volume and sales [72][73] Question: Reserved inventory policy and its effect on sales - Management explained that reserved inventory is beneficial for customer interest but acknowledged the need to manage how long a vehicle can be reserved [95][96]