Carvana Co CVNA Stocks trade lower in sympathy on Thursday CarMax Inc KMX after the stock plummeted after the company’s weak second quarter results.
- KMX Q2 Sales: $8.1 billion lost An estimated $8.57 billion
- KMX Q2 EPS: 79 cents lost Estimates of $1.39
Total retail used CarMax units were down 6.4%. Sales of used units in comparable stores fell by 8.3%. Comparable store sales declined in the low single digits in June and then declined sharply through the end of the quarter.
CarMax said the sharp declines were due to problems in vehicle affordability stemming from widespread inflationary pressures, as well as rising interest rates and low consumer confidence.
“As we manage the near-term pressures our industry is facing, we continue to sharpen our focus on driving additional operational efficiencies across our organization,” said bill nashPresident and CEO of CarMax.
CarMax sells, finances and services used and new automobiles through a chain of used car retail stores. Carvana operates an e-commerce platform for buying and selling used cars.
Related link: CarMax stock plummets into profit
CVNA Price Action: Carvana has a 52-week high of $240.58 and a 52-week low of $19.45.
The stock is down 20.7% at press time to $21.32 Gasoline Pro.
Photo: Tony Webster by Flickr.
