KMX - Solid qtr with improved 2-yr stack trends, but will take time to improve competitive positioning

Research evidence excerpt

KMX - Solid qtr with improved 2-yr stack trends, but will take time to improve competitive positioning

Truist Securities

Equity Research Report June 17, 2026

CONSUMER: Hardlines/Broadlines CarMax, Inc. (KMX)

KMX - Solid qtr with improved 2-yr stack trends, but will take time to Scot Ciccarelli, CFA

212-319-3920 improve competitive positioning

Scot.Ciccarelli@truist.com

Shervin Zand Net/net – 1Q comps declined by (0.8%) vs our 0%E, but GPUs were better than expected

212-590-0987 in both used retail and wholesale. The co is working on improving its price competitiveness

Shervin.Zand@truist.com and customer experience, especially for those using both KMX’s online tools and bricks-and-

mortar locations. We think that better prices are a powerful lever, but the co will need to gain

Joseph Civello back mindshare for online transactions from Carvana (CVNA, NR) and, in our view, have to

212-590-0968 figure out how to better compete with traditional dealers that have deeper pools of inventory

Joseph.Civello@truist.com on specific makes/models, once customers know what they want. Given these challenges,

we remain Hold rated; PT to $50 from $47.

Stock Rating HOLD Used comps just below expectations but GPU better – Used unit comps declined by

Unchanged (80bps) vs. our flat forecast, while total units were very close to forecast at 230.3k vs. our

231.3k. The 2-yr improved to +7.3% from 3.2% but was essentially flat on a 3-yr at +3.5%

Price Target $50.00 (and still in sharp contrast to Carvana, which is growing at an estimated 30%). However,

↑ while the co is investing in price to be more competitive, GPUs were better than we had

from modeled at $2,177 vs. our $2,118 (the earnings model is highly sensitive to GPU). We