Dec 18 (Reuters) - CarMax reported a drop in third-quarter revenue and profit on Thursday, hurt by weaker demand for and falling prices of used vehicles in the U.S.
Shares of CarMax were down about 7% in
premarket trade.
The largest U.S. used-car retailer has faced difficulty reselling vehicles at the higher prices it paid for them, as a marketwide dip followed a tariff-induced demand surge earlier this year.
Last month, the company said its CEO Bill Nash would step down after facing pressure from the company's board for better performance and a change.
CarMax's vehicle purchases during the quarter were down nearly 12% from a year ago to 238,000 cars.
"It is clear CarMax needs change," David McCreight, CarMax's interim chief executive officer, said on Thursday.
The company said it was on track to cut at least $150 million in selling, general and administrative costs by the end of fiscal 2027 and had reduced its workforce during the third quarter.
The Richmond, Virginia-based company said it would lower retail margins and boost marketing in the current quarter to offset the demand fall.
Its overall revenue fell 6.9% from a year ago to $5.79 billion for the quarter through November.
CarMax earned a third-quarter profit of $62.2 million, or 43 cents per share, down from $125.4 million, or 81 cents per share, a year earlier.
(Reporting by Nathan Gomes in Bengaluru; Editing by Sahal Muhammed)
