CarMax (NYSE:KMX) shares plunged premarket Thursday after the company reported its earnings for the second quarter.
KMX shares are currently down more than 10% premarket, around the $71.70 mark, after closing Wednesday's session at $79.69 per share.
The used vehicle retailer missed the average analyst EPS estimate, coming in at $0.75, $0.03 worse than the consensus expectation of $0.78. Revenue for the quarter came in at $7.1 billion, down 13.1% YoY but above the consensus estimate of $7.01B.
Used vehicle demand during the quarter appeared to have weakened, with retail used unit sales decreasing 7.4% and comparable store used unit sales declining 9% from the prior year’s second quarter. Wholesale units fell 11.2% YoY. Combined retail and wholesale used vehicle unit sales were 342,662, representing a decrease of 9%.
“We continue to drive sequential improvements in our business despite persistent widespread pressures across the used car industry," said Bill Nash, president and chief executive officer of KMX. "Through deliberate steps we are taking to control what we can, we delivered strong retail and wholesale gross profit per unit, reduced SG&A, and stabilized CAF’s net interest margin.”
The company also revealed it intends to resume share repurchases in the third quarter of this year.