Why CarMax (KMX) Shares Are Plunging Today - CarMax (NYSE:KMX)

CarMax Inc KMX reported second-quarter FY23 sales growth of 2% year-on-year to $8.14 billion, missing the consensus of $8.57 billion.
The company sold 376,616 units through combined retail and wholesale channels, a decrease of 10.3% Y/Y.
The company bought 342,731 vehicles from consumers and dealers, up 8.1% versus last year.
Gross profit was $737.1 million, down 9.6% Y/Y. SG&A expenses increased 16% Y/Y to $666 million.
EPS of $0.79 missed the consensus of $1.39.
KMX held $753.7 million in cash and equivalents.
Store Openings: During Q2, CarMax opened three new retail locations in Stockton, California, Wayne, New Jersey, and East Meadow, New York, bringing its total retail stores in the New York metro market up to three locations. In fiscal 2023, CarMax plans to open ten new locations across the country.
"While this was a challenging quarter across the used car industry, our ongoing progress in strengthening and expanding our omnichannel experience continues to positively differentiate us and enable us to grow market share," CEO Bill Nash said.
Price Action: KMX shares traded lower by 15.64% at $73.00 in premarket on the last check Thursday.
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CarMax Shares Plunge Following Dismal Q2; Shares New Store Plans