CarMax (KMX) Cautions on Q4 Margins and Marketing Spend

about 1 month ago

Paul Sweeney

"CarMax sticker. KMX also uh lower earlier. Now it's in the green, but we did see shares earlier falling more than 6% in this trading session. This after the company warned about fourth quarter margins. They're saying that they expect lower retail used margins in the fourth quarter in order to improve price competitiveness. The company also plans to boost its spending on marketing. So it doesn't seem as though this is what investors wanted to hear. But we are seeing shares bouncing back just a tad up about 8/10 of a percent right now as we speak. But it really hasn't been a great year for the company. shares of down about 50% uh so far this year in 2025."

CarMax (KMX) is under scrutiny as it warns of lower retail used margins in Q4, aiming to improve price competitiveness and increase marketing spend. Although there was a small rebound, the overall year-to-date performance has been weak with shares down about 50%.

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