Used-car retailer CarMax swung into a fourth-quarter loss as the company executes a turnaround plan centered on aggressive price reductions meant to draw customers back into showrooms. Management confirmed the firm paused its share buyback program during the quarter, signaling a defensive shift in capital allocation amid operational difficulties.

Financial results showed a net loss totaling $120.7 million, a sharp reversal from the $89.9 million profit recorded in the same period last year. This quarterly deterioration reflects the cost of using lower pricing to regain competitive footing in the softening used-vehicle sector.

Excluding certain non-cash charges and restructuring expenses, adjusted earnings per share landed at 34 cents, exceeding analyst FactSet expectations of 23 cents per share. While beating the street consensus on an adjusted basis, the headline loss demonstrates the deep pricing pressure the firm is absorbing to stabilize sales volumes.

Investors should focus on whether these price adjustments translate into sustainable volume growth in the near term, though the immediate impact forced the suspension of stock repurchases. The firm is prioritizing market positioning over immediate shareholder returns.