On Thursday, CarMax (NYSE:KMX) shares are down about 17 per cent in pre-market trading as the company delivered disappointing earnings. CarMax has reported a Q2 EPS of USD 0.79. Revenue for the quarter stood at USD 8.1 billion, lower by some margin compared to the consensus estimate of USD 8.61 billion.

The results are said to be disappointing and reflective of a continued challenging macro environment. The company said that as it navigates the near-term pressures facing its industry, it is focussed on driving additional operational efficiencies across business.

The vehicle industry is bound to remain pressured due to weakening consumer sentiment, new car production picking up, and rates rising, In the long term, the company believes KMX’s steady reinvestment behind digital capabilities and consumer insights makes it one of the best positioned in the space to continue gaining share.
It is to be noted that KMX’s share of nationwide 0-10 year old vehicle share continued to increase through July. The company said it plans to open 10 new stores in its 2023 fiscal year.

Founded in 1993, CarMax, Inc is a used vehicle retailer based in the United States. Headquartered in Richmond, It operates two business segments: CarMax Sales Operations and CarMax Auto Finance. As of 2021, the company operates 225 locations.