CarMax, Inc (NYSE:KMX) shares tumbled more than 11% after its second-quarter fiscal 2024 results highlighted the continued impact of the challenging economic environment on the used car industry.
Shares of the used car retailer were down 11.3% at US$71.68 mid-morning on Thursday.
For the quarter ended August 31, 2023, it reported earnings per share of $0.75, in line with the Street estimate, down from $0.79 in the year-ago quarter.
Net revenue fell 13.15% year-over-year to $7.1 billion, above the Street expectation per Zacks Consensus Estimate of $7 billion.
“We believe vehicle affordability challenges continued to impact our second-quarter unit sales performance, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightened lending standards and prolonged low consumer confidence,” the company said.
The decline in used vehicle revenues was also impacted by a decrease in the average retail selling price, down about $1,200 or 4% per unit.
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