CarMax Shares Plunge 18.6% on Weak Q2 Earnings and Declining Sales

CarMax (KMX) stock plummeted 18.6% to $46.44 following disappointing second-quarter earnings for fiscal 2026. The company opened trading NEAR $59 but faced immediate pressure as investors digested underwhelming sales figures and deteriorating margins.

Retail used vehicle unit sales dropped 5.4%, with comparable store sales falling 6.3%. Wholesale vehicle transactions declined 2.2%, contributing to a 7.2% revenue decrease in the retail segment. While gross profit per retail unit held steady at $2,216, the broader weakness sparked concerns about CarMax's near-term outlook.

Higher loan loss provisions compounded the challenges, reflecting tightening credit conditions in the used auto market. The selloff erased nearly one-fifth of CarMax's market value in a single session as traders priced in deteriorating fundamentals across both retail and wholesale operations.