CarMax Reports Sales Beat But Profit Margins Drop
CarMax (KMX) reported first-quarter revenue growth of 6.2%, beating Wall Street estimates, but its stock fell by 9% as investors focused on declining profit margins per used car sold. The company's new CEO outlined a strategy prioritizing volume over margin, which led to an intentional reduction in retail pricing and profitability.
Tickers: $KMX
Topics: automotive CEO strategy profit margins used-car market