April 10 (Reuters) - Used-car retailer CarMax KMX.N on Thursday reported a fourth-quarter profit that missed Wall Street estimates, as higher borrowing costs kept some consumers from making big ticket purchases.
Shares of the Richmond, Virginia-based company fell 7.5% in premarket trading.
Used-car retailers' sales have been under pressure from a post-pandemic trend of consumers gravitating towards new vehicles with improved features and better financing options.
However, U.S. President Donald Trump's tariffs on automotive imports have raised concerns about the affordability of new vehicles, which industry experts said may sway cash-conscious buyers towards used cars in the $15,000 to $20,000 price range.
CarMax reported an adjusted profit of 64 cents per share for the quarter ended Feb. 28, compared with average analyst expectation of 65 cents per share, according to data compiled by LSEG.
Its quarterly revenue increased 6.7% to $6 billion, marginally higher than expectations of $5.96 billion.
(Reporting by Nathan Gomes and Utkarsh Shetti in Bengaluru; Editing by Leroy Leo)
((Nathan.Gomes@thomsonreuters.com))
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