CarMax posts quarterly loss on goodwill charge, weak used-car demand

April 14 (Reuters) – Used car retailer CarMax reported a fourth-quarter loss on Tuesday, hurt by a goodwill impairment charge and shrinking margins from used vehicles.

Shares of the Richmond, Virginia-based company fell 6.8% in premarket trading.

The used-car sector has struggled to move inventory at profitable prices, with softening consumer demand and import tariffs squeezing margins across the industry.

CarMax’s retail gross profit per used vehicle slipped to $2,115 in the quarter, down from $2,322 a year ago. Its wholesale gross profit per unit fell to $940 from $1,045 a year ago, as it cut prices to drive demand.

New CEO Keith Barr said the largest U.S. used-car retailer is moving “with urgency” to improve efficiency and regain sales momentum.

The ongoing conflict in Iran has also dampened consumer sentiment, with gasoline prices near $4 per gallon, curbing some spending and prompting interest in more affordable electric and hybrid vehicles.

CarMax said it recorded a non-cash goodwill impairment charge of $141.3 million in the quarter, citing a fall in its share price and weaker financial performance in fiscal 2026.

The company’s quarterly revenue fell 1% to $5.95 billion from a year ago.

CarMax reported a fourth-quarter loss of $120.7 million, or 85 cents per share, compared with a profit of $89.9 million, or 58 cents per share, a year earlier.

On an adjusted basis, it earned a quarterly profit of 34 cents per share, compared with 64 cents a year ago.

(Reporting by Nathan Gomes in Bengaluru; Editing by Tasim Zahid)