Why U.S. Used Car Representative Stock Plummeted 9% Ahead of Earnings D-Day

CarMax Inc. (NYSE: KMX), the U.S. used‐car retailer, slid more than 9% intraday on the New York Stock Exchange on the 17th, trading at $47.36. Volume topped 5.5 million shares, putting its market capitalization at roughly $6.7 billion (about 9.4 trillion KRW), wiping out nearly $560 million (around 0.8 trillion KRW) in value in a single day.

Investors are closely watching ahead of CarMax’s fiscal 2027 first‐quarter earnings report, due before the opening bell, to gauge how slowing used‐car demand and margin pressures will be reflected in the results. Analysts have recently warned that modest revenue declines and compressed margins, combined with cost‐cutting measures and price‐reduction strategies, could weigh on short‐term profitability.

Founded in 1993, CarMax is the largest used‐car retailer in the United States. Headquartered in Richmond, Virginia, it operates approximately 230 stores nationwide, selling about 780,000 used vehicles to retail customers and 540,000 vehicles through wholesale channels each year. In addition to used‐car sales, the company generates revenue from vehicle service and warranty products and from its in‐house auto finance lending business.