America’s Car-Mart, Inc. CRMT shares are trading higher on Friday. The company reported third-quarter FY24 earnings of a $(1.34) loss, wider than the analyst consensus for a $(0.65) loss.
America’s Car-Mart registered quarterly revenue of $299.61 million, missing the analyst consensus of $350.95 million.
Third-quarter sales fell 7.9% due to decreased retail units sold, while total collections increased 9.3%. A portion of the decline in revenue was masked by the average retail sales price being up 7.5%.
Sales for the quarter were 11,664 units versus 14,508 units, down 19.6% compared to the prior-year quarter.
Total credit application volume was down 8.3% year over year, which represented about half of the sales decline.
Allowance for credit loss in the quarter under review adjusted to 25.74%, down sequentially 30 bps.
“While sales volumes fell short of our expectations during the quarter, they are not reflective of the efforts put forth by the team,” said Doug Campbell President and CEO.
“We have implemented several initiatives to improve sales during the fourth quarter. Our priority is to be agile with our cost structure and investments to deliver long-term profitability and shareholder value,” added Campbell.
In February, the Company entered into a strategic partnership with Cox Automotive which is expected to drive better outcomes regarding vehicle acquisition, reconditioning, transportation, and remarketing activities.
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Price Action: CRMT shares are trading higher by 4.11% to $64.86 on the last check Friday.
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