Carvana Co CVNA shares are trading lower Thursday in sympathy with CarMax Inc KMX after the stock plunged following the company's weak second-quarter results.
- KMX Q2 Revenue: $8.1 billion missed estimates of $8.57 billion
- KMX Q2 EPS: 79 cents missed estimates of $1.39
CarMax's total retail used units sold decreased 6.4%. Used unit sales in comparable stores were down 8.3%. Comparable store sales saw a low single-digit decline in June and then fell sharply through the end of the quarter.
CarMax said the sharp declines were due to vehicle affordability challenges that stem from widespread inflationary pressures, as well as climbing interest rates and low consumer confidence.
"As we navigate the near-term pressures facing our industry, we are further sharpening our focus on driving additional operational efficiencies across our business," said Bill Nash, president and CEO of CarMax.
CarMax sells, finances and services used and new cars through a chain of used retail stores. Carvana operates an e-commerce platform for buying and selling used cars.
Related Link: CarMax Stock Crashes Into Earnings
CVNA Price Action: Carvana has a 52-week high of $240.58 and a 52-week low of $19.45.
The stock was down 20.7% at $21.32 at time of publication, according to Benzinga Pro.
Photo: Tony Webster from Flickr.
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