By Connor Hart
CarMax said its fiscal first-quarter profit fell, hurt by price cuts the company had implemented to help spur sales.
The used-car retailer posted a profit of $185.6 million for its three months ended May 31, down from a profit of $210.4 million a year earlier. Quarterly earnings of $1.31 a share topped the 91 cents a share that analysts polled by FactSet had expected.
Net sales and operating revenues climbed 6.2% to $8.01 billion, ahead of Wall Street models for $7.42 billion.
Gross profit declined, reflecting the continuation of pricing actions put in place to drive improved sales trends, CarMax said. Comparable sales slipped 0.8%, not as steep as the 2% decline that analysts had forecast.
Combined retail and wholesale unit sales came in at 392,357, up 3.3% from a year ago. Sales of used retail units increased slightly, the company noted.
Chief Executive Keith Barr said CarMax has established a turnaround strategy that is driving early results and will continue to be implemented throughout the year.
Looking ahead, the company will price its cars competitively, work to improve digital capabilities and in-store experiences, grow profitability and look to cut costs.
Shares rose 3.6%, to $54, in premarket trading.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
June 17, 2026 06:28 ET (10:28 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.