CarMax slides into the red as margins and demand retreat

Published: 2026-04-14 12:03:39 ET KMX

American used-car retailer CarMax posted a Q4 loss amid strained market conditions and cooling demand.

Esteban Tesson

Published on 04/14/2026 at 12:03 pm EDT

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.