CarMax shares fell up to 9.4% in early New York trading after the company reported a fourth consecutive quarter of declining same‑store sales. First‑quarter revenue from locations open at least a year slipped 0.8%, extending a three‑month streak of negative comps. The stock, up 35% year‑to‑date, still sits 67% below its 2021 peak.

Evercore analyst Michael Montani said headline numbers beat expectations, suggesting the turnaround plan is moving forward. Yet he warned that a still‑negative comparable sales picture and falling retail GPU keep the durability of the recovery in doubt. Gross profit per used vehicle is projected to drop $200 this year, according to CEO Keith Barr.

Barr outlined steps to revive growth, including a refreshed pricing strategy, an upgraded online buying experience, and a logistics overhaul aimed at cutting “unproductive” vehicle transfers. The Richmond‑based firm hopes tighter inventory matching will lift margins and stabilize unit sales, which finally halted their year‑long decline.

Investors will watch the fall‑out closely, as the stock’s recent rally masks underlying weakness. A further update on CarMax’s growth roadmap is slated for late fall, providing a near‑term checkpoint on whether the turnaround can sustain earnings momentum.