Auto retail stocks sink after CarMax results show consumer pushback on high prices

Sep. 29, 2022 11:26 AM ETCarMax, Inc. (KMX)AN, PAG, ABG, GPI, SAH, CRMT, ACV, CARS, VRM, ACVABy: Clark Schultz, SA News Editor18 Comments

A CarMax office building in Houston, TX, USA.

JHVEPhoto

Shares of CarMax (NYSE:KMX) collapsed on Thursday after a weak earnings report.

Combined retail and wholesale used vehicle unit sales were down 10.3% year-over-year for KMX during the quarter to 376,616.

In its first crack at the CarMax (KMX) report, Morgan Stanley said the story of KMX's Q2 was clearly that demand destruction is in play with a buyers' strike taking place against high used auto prices and rising loan rates.

Decliners within the auto retail sector included ACV Auctions (ACVA) -15.25%, Sonic Automotive (SAH) -12.05%, Group 1 Automotive (GPI) -10.47%, AutoNation (AN) -10.23%, Penske Automotive Group (PAG) -10.05%, Vroom (VRM) -9.44%, America's Car-Mart (CRMT) -9.50%, Asbury Automotive Group (ABG) -8.44%, and Cars.com (CARS) -7.47%.

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