Posted 4/11/2024, 12:24:09 PM
CarMax Shares Plunge 14% as Sales and Profits Decline, Company Slows Growth Plans
- CarMax shares plummeted 14% after disappointing Q4 results, with sales and EPS missing estimates
- Retail and wholesale used unit sales declined 0.9% combined to 287,603 amid low consumer confidence and high interest rates
- Gross profit fell 4.1% to $586.2 million as CarMax sold vehicles at lower prices
- For 2025, CarMax expects $500-550 million in capital expenditures
- CarMax is extending timeline to sell over 2 million units annually from 2026-2030, slowing previous growth plans
