Leading used car retailer CarMax (KMX) reported 3Q22 earnings for the period ended August 31 Thursday morning. Used vehicle sales units declined 6.4% year over year to 216,939 after consumers couldn’t get their hands on enough cars during the pandemic. KMX’s margins were also squeezed resulting in a 54% decline in EPS to 79 cents. The stock is currently down more than 20%. (As an aside the average selling price for used vehicles was $28,657 compared to $28,844 in the previous quarter supporting my contention that inflation in the real world – as measured by market prices – is stabilizing and rolling over despite the August CPI Report).
Combined with Federal Express’s (FDX) results last week and the Fed’s vise grip on inflation I am even more convinced the next leg down is upon us. We’ll get more data this afternoon when Nike (NKE) and Micron (MU) report.