CarMax reported results for the third quarter ended November 30, 2025.
Leadership changes were announced with David McCreight named Interim President and CEO.
Retail used unit sales and wholesale units decreased, impacting gross profits and margins.
Leadership Changes
David McCreight appointed as Interim President and CEO, Tom Folliard as Interim Executive Chair of the Board.
Sales Performance
Combined retail and wholesale used vehicle unit sales decreased by 7.2% from the prior year's third quarter.
Gross Profit Decrease
Total gross profit down 12.9% versus last year, with retail and wholesale vehicle gross profits declining.
SG&A Expenses
SG&A expenses increased by 1.0%, driven by advertising spend and restructuring costs.
Net Earnings Per Share
Net earnings per diluted share of $0.43 compared to $0.81 last year, impacted by restructuring charges.
- The decrease in retail and wholesale unit sales reflects market challenges impacting CarMax's financial performance.
- SG&A expenses increased due to advertising spend and restructuring costs, affecting the bottom line.
CarMax faces challenges in retail and wholesale sales, highlighting the need for strategic changes to improve financial performance in the future.