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)

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