CarMax reported total sales of $6.5 billion for the third quarter, a 24% decrease compared to the same period last year.
Retail unit sales declined by 20.8%, with used unit comps down 22.4%.
Wholesale performance was also impacted, with gross profit per unit decreasing from $1,131 to $966.
The company took deliberate steps to manage through the challenging market conditions, including reducing SG&A expenses, selling a higher mix of older lower-priced vehicles, and slowing vehicle purchases in response to steep depreciation.
CarMax has prioritized initiatives that unlock operational efficiencies and create better experiences for customers, while selectively investing in projects that have the potential to deliver new capabilities.
The company paused share buybacks, slowed CapEx spending, and plans to open only five new locations in fiscal year 2024, reflecting a conservative approach to capital structure and store growth.