KMX - Quick Take - Comp a touch light, but mrgs moderately better; still in a tough spot competitively

Research evidence excerpt

KMX - Quick Take - Comp a touch light, but mrgs moderately better; still in a tough spot competitively

Truist Securities

Equity Research Report June 17, 2026

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

KMX - Quick Take - Comp a touch light, but mrgs moderately better; Scot Ciccarelli, CFA

212-319-3920 still in a tough spot competitively

Scot.Ciccarelli@truist.com

Shervin Zand Net/net – The co’s new CEO, Keith Barr, introduced a new growth framework for CarMax,

212-590-0987 including providing customers with a Great Offering (competitively priced products), an Easy

Shervin.Zand@truist.com Experience (better connected digital and in-store experience), more Ancillary sales (like CAF

and EPP), and a Leaner cost structure. The focus points make sense to us since we think

Joseph Civello the co has been uncompetitive on price (as we have highlighted in our work with CarGurus

212-590-0968 [CARG, NR]), and its online process is generally viewed as less user-friendly than it is for

Joseph.Civello@truist.com Carvana (CVNA, NR). However, we still think the co is caught between Carvana in the

online world and traditional dealers that have deeper pools of inventory for specific makes/

models. Further, the stock is up ~40% from recent lows, comps were still negative despite

significant price cuts, and we suspect it will cost $ to improve the operations/tech, even as

Current Price (Jun. 16, $52.11 CAF (consumer finance) seems like it will be the main driver of earnings this yr. Thus, while 2026)

the qtr was moderately better, we remain neutral on the stock. More after today’s call.

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 to forecast at 230.3k vs.