CarMax (KMX) reported a net loss of $120.7 million for its fiscal fourth quarter. A significant non-cash goodwill impairment charge primarily caused the loss. Shares fell in premarket trading following the announcement.
The company posted adjusted earnings of $0.34 per share. Revenue reached $5.95 billion for the period. Both figures exceeded analyst expectations despite the overall net loss.
Retail gross profit per used vehicle dropped to $2,115. This represents a $207 decline from the previous year. CarMax reduced prices to attract buyers as demand for used cars softened.
The results highlight growing affordability challenges for U.S. consumers. A Cox Automotive survey released today echoed these concerns. The company's performance serves as a bellwether for the broader automotive and big-ticket retail sectors.
CEO Bill Nash stated the company is moving with urgency to improve sales momentum. The firm continues to navigate challenging conditions in the used-vehicle market.