CarMax Inc.’s stock (KMX) experienced a 6.5% decline in premarket trade on Thursday following the release of its second-quarter earnings report. The Richmond, Va.-based used car retailer faced continued pressure within the sector, resulting in a decrease in net income compared to the same period last year.
For the quarter ending on August 31, CarMax reported a net income of $118.6 million, or 75 cents per share, down from $125.9 million, or 79 cents per share, in the previous year. The company’s sales also fell from $8.145 billion to $7.074 billion year-over-year. The FactSet consensus had estimated earnings per share of 75 cents and sales of $7.024 billion.
Despite the challenging industry conditions, CarMax’s CEO, Bill Nash, expressed optimism about the company’s ability to generate sequential improvements in its business. He stated, “We continue to drive sequential improvements in our business despite persistent widespread pressures across the used car industry.”
In terms of unit sales, combined retail and wholesale used vehicle transactions registered a 9% decline to 342,662. However, online retail sales saw growth, accounting for 14% of retail unit sales compared to 11% last year.
Since the beginning of the year, CarMax’s stock has gained 31%, outperforming the S&P 500 SPX index, which has grown by 11.3%.
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