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CarMax, Inc.: From Pricing Competitiveness to Conversion Lift—Which Needle Mover Will Matter Most for the Stock Next?

CarMax, Inc. entered its third fiscal quarter of 2026 amid transitional leadership and intensified efforts to regain sales momentum following consecutive declines in unit volumes and profitability. Management acknowledged that recent performance did not reflect the company’s long-term potential and outlined immediate priorities centered on pricing adjustments, marketing investment, digital streamlining, and cost reduction. Total sales of $5.8 billion declined 6.9 percent year-over-year, with retail unit sales down 8 percent and comparable used unit sales decreasing 9 percent. Average selling price increased slightly to $26,400, largely reflecting higher acquisition costs despite a greater mix of older, higher-mileage vehicles that now represent over 40 percent of total retail sales. Wholesale volumes fell 6.2 percent, with lower average prices of $8,100 per vehicle.