KMX Stock Edges Higher: CarMax Shares Bounce as 145 Corporate Jobs Go Ahead Of Q2 Report

• Roles were cut in the Richmond area, with others in Dallas, Atlanta and at its Edmunds automotive research business.
• The company’s second-quarter earnings are due on September 29.
• JP Morgan raised its price target on KMX to $70 from $60 earlier this month while voicing optimism for a Q2 beat.

Shares of CarMax (KMX) rose as high as 3% on Monday following reports that the company cut 145 of its corporate staff in its third layoff in 12 months as it seeks to cut costs amid rising interest rates.

The stock is still up roughly 50% this year after a brutal 2025, when used-car demand, price competition and a CEO change knocked the shares to a 52-week low of $30.26. The stock closed 1% higher on Monday.

Third Slim-Down In A Year

The Wall Street Journal said the 145 positions amount to about 4% of CarMax’s corporate staff and sit inside a turnaround meant to restart sales and restore profit in a soft auto market marked by high vehicle prices and higher borrowing costs.

Roles were cut in the Richmond area, with others in Dallas, Atlanta and at its Edmunds automotive research business, the report noted.

The prior two rounds in the past year were larger: about 350 customer-experience jobs in October 2025 and about 230 home-office and auto-finance roles in January. Since summer 2024, CarMax has cut more than 1,000 jobs.

Barr’s “Run Lean” Brief

Keith Barr, the former InterContinental Hotels Group chief, became CEO of CarMax on March 16 after the board ousted Bill Nash. In June, he framed the company strategy: a better offering, an easier purchase, more value per deal, and a leaner company. CarMax is targeting $200 million in annualized overhead savings by the end of fiscal 2027.

Revenue for the company’s quarter ended May 31 rose 6.2% to $8.01 billion, and combined retail and wholesale units increased 3.3%. Comparable-store used-unit sales still slipped 0.8%. Gross profit per retail used car, however, fell $230 from a year-earlier record as CarMax priced to win volume. Net income dropped to $186 million from $210 million; earnings per share was $1.31 versus $1.38.

The company’s second-quarter earnings are due on September 29. JP Morgan raised its price target on KMX to $70 from $60 earlier this month while voicing optimism for a Q2 beat. Analysts on average are expecting the company to report revenue of $6.97 billion and earnings per share of $0.73.

Rival Feels The Heat Too

CarMax’s biggest rival is Carvana, the online used-car seller that has taken share with home delivery and no-haggle prices. Both chase the same inventory and rate-sensitive buyers and have been impacted by the market conditions.

After a record second quarter of 197,325 retail units and $7.38 billion in sales, Carvana guided 2026 adjusted core profit of $2.7 billion–$3.0 billion—above last year’s $2.24 billion, but short of Wall Street consensus estimates around $3 billion. Gross profit per unit slipped, which also weighed the shares down following the earnings report in late July.

How Did KMX Retail Traders React?

On Stocktwits, retail sentiment around KMX stock stayed within bullish territory over the past 24 hours, while message volume stayed at normal levels.

KMX stock has gained 50% year-to-date, while CVNA stock has dropped 20%. 

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