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(Bloomberg) -- CarMax Inc. backed away from the timing of its financial goals, joining a growing list of companies indicating that uncertainty around President Donald Trump’s trade war is making long-term planning difficult.
While the used-car retailer said it was making progress toward its targets, it will remove the timelines associated with them due to “the potential impact of broader macro factors.” CarMax revealed the decision Thursday in a statement that also detailed worse-than-expected fourth-quarter results.
Its shares tumbled as much as 21% in New York, the biggest intraday decline since September 2022.
The guidance change reflects uncertainty in the market but wasn’t a “pessimistic” move, Chief Executive Officer Bill Nash said on a conference call with analysts to discuss earnings. “Why put a target out there that’s really speculative not knowing exactly where this environment is going to go?”
CarMax is the latest company to walk back long-term targets amid economic volatility and confusion surrounding US trade policy. Delta Air Lines Inc. on Wednesday pulled its 2025 profit guidance, saying it couldn’t reasonably predict how the rest of the year would play out.
Trump’s tariffs are expected to have a particularly severe impact on the auto industry, with a 25% levy on imports driving up prices for new cars and having spillover effects on the used market. Carbuyers rushed to dealer lots last month to beat the potential price hikes, boosting sales of new vehicles in the US.
Higher Demand, Prices
CarMax is “seeing a lot of interest” in used cars right now given the expected impacts of tariffs, Nash said. The company’s average selling price of a used car rose for the first time in more than two years.
However, the cost of parts that it buys to recondition its vehicles will also rise, Nash said. “We’re looking at mitigation plans from a parts standpoint.”
CarMax said last year it aimed to sell more than 2 million total retail and wholesale units annually between fiscal 2026 and 2030. It also expected to post $33 billion in annual revenue and have a more than a 5% nationwide market share of used vehicles from almost new to 10 years old.
The company on Thursday reported fiscal fourth-quarter earnings per share of 58 cents, missing the 65-cent average of analyst estimates compiled by Bloomberg.
Sales were relatively strong in December and January, Nash said, but softened in February compared to a year ago, which benefited from a leap day. He also cited a delay in tax refunds that may have affected sales in the month.