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Shares of CarMax (NYSE:KMX) cratered on Thursday with a 24.60% drop after the auto retailer missed estimates with its Q2 earnings report.
Combined retail and wholesale used vehicle unit sales were down 10.3% year-over-year to 376,616, Online retail sales accounted for 11% of retail unit sales, compared with 9% in the second quarter of last year. Total retail used units sold decreased 6.4% during the quarter, while used unit sales in comparable stores were down 8.3%. Gross profit per retail used unit was $2,282, which marked an increase of $97 per unit from a year ago despite steep market depreciation.
In its first crack at the CarMax (KMX) report, Morgan Stanley said the story of KMX’s Q2 was clearly that demand destruction is in play with a buyers’ strike taking place against high used auto prices and rising loan rates.
Read about how the KMX’s report hit other auto retail stocks.
Image and article originally from seekingalpha.com. Read the original article here.