CarMax Says Used-Car Sales Hit by Waning Consumer Confidence
2022.04.12 16:07
© Bloomberg. Customers shop for used vehicles at a CarMax dealership in Louisville, Kentucky, U.S., on Thursday, June 24, 2021. CarMax Inc, jumps 5.8% in premarket trading after it reported revenue for the first quarter that beat the average analyst estimate.
(Bloomberg) — CarMax Inc (NYSE:KMX). fell in early trading after its fourth-quarter used vehicle sales missed analyst estimates, with soaring prices and anxiety over the economy keeping some customers away.
The Richmond, Virginia-based company cited declining consumer confidence and affordability, among other factors, for a 6.5% drop in the number of used cars it sold last quarter in stores that have been open at least 13 months. The average price of a car rose 40%, or $8,300, in the period ended Feb. 28 compared with a year ago, CarMax said in a statement Tuesday.
The results are yet another sign that higher costs and worries about the economy are starting to take a toll on consumer behavior. Used car prices have been a major contributor to elevated inflation readings, though they have begun to slip this year.
Shares of CarMax fell more than 4% in premarket trading.
©2022 Bloomberg L.P.
