CarMax Inc. has abandoned its timeline for achieving specific financial targets, joining a growing list of companies that struggle to plan long-term due to the uncertainty surrounding President Donald Trump’s trade war. The used-car retailer stated that it was making progress towards its goals but removed timelines due to “broader macro factors” affecting markets.
CarMax reported worse-than-expected fourth-quarter results and shares plummeted 21% in New York, marking the largest intraday decline since September 2022. CEO Bill Nash attributed the decision not to provide targets to market uncertainty, saying it’s speculative without knowing the environment’s trajectory.
The move reflects economic volatility and confusion surrounding US trade policy. Delta Air Lines Inc. previously pulled its 2025 profit guidance due to similar concerns. Trump’s tariffs on auto imports are expected to affect the used-car market, with a 25% levy driving up prices for new cars.
Despite this, CarMax reported increased demand for used cars, with an average selling price rising for the first time in over two years. However, the company will face higher costs for parts due to reconditioning vehicles.
In 2026-2030, CarMax aimed to sell more than 2 million units and post $33 billion in annual revenue. The company also targeted a nationwide market share of used vehicles from almost new to 10 years old. However, its earnings per share fell short of analyst estimates, with sales weakening in February compared to the previous year.
Source: https://finance.yahoo.com/news/carmax-pulls-financial-target-timelines-150622227.html