were tumbling in premarket trading Thursday after the user-car seller reported fiscal second-quarter revenue that declined sharply from a year earlier.
Revenue was $7.1 billion, down 13.1% from a year earlier, and slightly above estimates of $7.02 billion, according to FactSet. Total retail used-vehicle unit sales fell 7.4% from the year-earlier quarter and comparable-store used-unit sales fell 9%. The average retail selling price also fell by about $1,200 per unit, or 4%.
CarMax (ticker: KMX) posted earnings of 75 cents a share, falling from 79 cents in the year-ago quarter.
“We believe vehicle affordability challenges continued to impact our second quarter unit sales performance, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightened lending standards and prolonged low consumer confidence,” Carmax said in the earnings release.
The company said it intends to resume share repurchases in the third quarter after pausing them in the third quarter of the previous fiscal year.
Shares of CarMax were down 11% to $70.65 in premarket trading. Coming into Thursday’s session, the stock has risen 30% this year.
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