The group was hit by asset impairments and margin erosion, which sent its shares down nearly 13% in Tuesday trading. The entire sector is struggling to move inventory at profitable prices, weighed down by slowing consumer spending and the impact of tariffs.
Operational metrics underscore this pressure on profitability. Gross profit per retail used unit fell to $2,115 from $2,322 a year earlier, while the wholesale segment saw its per-unit margin decline to $940 from $1,045. To bolster demand, the company lowered its prices. Furthermore, gasoline prices nearing $4 per gallon and geopolitical tensions, notably the conflict in Iran, are weighing on consumer sentiment while driving interest toward more affordable hybrid and electric vehicles.
On the financial front, CarMax recorded a $141.3m goodwill impairment charge, linked to its declining share price and weakened performance outlook for fiscal 2026. Quarterly revenue edged down 1% to $5.95bn. Overall, the group reported a net loss of $120.7m, or 85 cents per share, compared with a profit of $89.9m a year ago, while adjusted earnings came in at 34 cents per share, down from 64 cents previously.
CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
