CarMax (KMX) Q1 Earnings Decline as Used Car Sales Slow

CarMax Inc. (KMX) announced a significant drop in first-quarter earnings for the period ending May 31, 2026, missing analyst projections. The automotive retailer reported net earnings of $150 million, or $0.95 per share, a 30% decrease from $215 million, or $1.25 per share, in the same quarter last year. Revenue for the quarter also declined by 10% to $6.5 billion, falling short of consensus estimates. Same-store used vehicle sales were down 12%, reflecting reduced customer traffic and persistent affordability challenges for consumers. Management cited higher interest rates and increased market competition as key factors impacting demand. Shares of CarMax reacted negatively to the announcement on June 17, 2026.