Carmax Case Analysis

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Carmax, the largest used-vehicle retailer in the U.S., will be reporting 4Q2016 earnings early tomorrow morning. Expectations for the firm have been raised, but that does not necessarily mean a solid earnings report will help the stock. Over the past year, Carmax shares have plummeted 30%. Though used car sales continue to contribute to a bulk of the revenue, a primary reason the company is struggling is because the younger demographic has not been buying cars. This lack of purchasing coupled with the fact that individuals and families are getting more life out of their automobiles is hurting the auto industry as a whole. Despite headwinds, Carmax has been working on store expansions into new markets. During fiscal 2015, the auto superstore

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