Full-Time
Posted on 5/11/2026
Used-car retailer with no-haggle pricing
No salary listed
Houston, TX, USA
In Person
CarMax buys used cars from individuals and auctions, reconditions them to high standards, and sells them at fixed no-haggle prices. Customers can browse inventory, get appraisals, and complete purchases online or in-store, with financing options and extended service plans available. It stands out by offering transparent, fixed pricing, a technology-enabled shopping experience, and being the largest used-car retailer in the United States. Its goal is to provide a straightforward, trustworthy car-buying experience and to maintain leadership in the U.S. used-car market.
Company Size
10,001+
Company Stage
IPO
Headquarters
Richmond, Virginia
Founded
1993
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Professional Development Budget
Flexible Work Hours
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CarMax shares fell 12% in premarket trading after management warned that profit per retail vehicle would continue declining whilst expanding cost-cutting plans. The company expects retail gross profit per unit in fiscal 2027 to fall at a similar pace to the fourth quarter's 8.9% decline. CarMax is raising its sales, general and administrative expense reduction target to $200 million by end of fiscal 2027, up from $150 million. Capital spending will be cut to approximately $400 million in fiscal 2027, roughly $140 million below the previous year. The company faces intensifying competition from online-focused Carvana and traditional dealerships. Fourth-quarter results showed comparable used-vehicle sales declined 1.9%, beating the 4.7% expected drop, whilst gross profit per used vehicle reached $2,115, above the $2,050 consensus estimate.
CarMax reported a fiscal fourth-quarter loss of $120.7 million, or 85 cents per share. However, adjusted earnings reached 34 cents per share, surpassing Wall Street expectations of 22 cents per share. The Richmond, Virginia-based used car dealership chain posted quarterly revenue of $5.95 billion, exceeding analyst forecasts of $5.77 billion. For the full year, CarMax reported profit of $247.3 million, or $1.68 per share, with revenue of $25.88 billion. The results beat expectations despite the quarterly loss, demonstrating stronger-than-anticipated performance in both earnings and revenue metrics.
CarMax, a used automotive vehicle retailer, will report Q1 results on Tuesday before the bell. The market expects revenue to decline 4.6% year-on-year, reversing the 6.7% increase recorded in the same quarter last year. Last quarter, CarMax beat revenue expectations with $5.79 billion, down 6.9% year-on-year, whilst exceeding analysts' EPS and EBITDA estimates. However, the company has missed Wall Street's revenue estimates multiple times over the past two years. Analysts have largely reconfirmed their estimates over the last 30 days. CarMax shares have risen 12.2% over the past month, outperforming the automotive and marine retail segment's 3.3% average gain. The current share price of $46.79 sits above the average analyst price target of $40.92.
CarMax's new CEO Keith Barr has outlined three priorities for fiscal year 2027, with technology upgrades at the forefront. The 55-year-old executive, whose appointment took effect on 16 March, emphasised updating the used-car retailer's e-commerce platform to improve customer experience and compete with rivals like Carvana. Barr's other priorities include making CarMax "the obvious choice" through competitive pricing and exceptional user experience, and acting with urgency to change what isn't working. His focus on technology mirrors his previous role as CEO of InterContinental Hotels Group from 2017 to 2023, where he modernised digital systems. Major shareholder Starboard Value LP has criticised CarMax's digital trade-in process as cumbersome compared to competitors, urging a more streamlined approach with fewer steps and instant valuations.