DETROIT — CarMax shares plummeted by 20% on Thursday after the used car retailer reported quarterly earnings and revenue that fell short of Wall Street expectations, pushing the company’s stock to its lowest level in over five years.

By the end of trading, CarMax closed at $45.60 — its weakest finish since March 2020, when the COVID-19 pandemic temporarily halted U.S. auto production and retail operations. So far this year, the stock has plunged about 44%, bringing the company’s market capitalization down to approximately $6.84 billion.

In its latest earnings report, CarMax posted revenue of around $6.6 billion, representing a 6% decline from the same period last year. Adjusted earnings per share came in at 99 cents, slightly below analysts’ projections of $1.05 per share and $7.01 billion in revenue, according to estimates from LSEG.

The company’s other key performance indicators were also weaker compared to last year. Overall vehicle sales fell by 4.1%, while net income dropped roughly 28% to $95.4 million.

CarMax CEO Bill Nash described the fiscal second quarter, which ended on August 31, as “challenging.” In the company’s earnings statement, Nash attributed the disappointing results to several factors — shifting market conditions, an early surge in sales driven by tariff concerns, and depreciation across its vehicle inventory.

“For the quarter, every month showed a year-over-year decline, and each month became a bit softer as the quarter went on,” Nash explained during Thursday’s investor call. “That said, we’ve made progress entering this quarter with stronger inventory management and more competitive pricing.”

The disappointing performance didn’t just affect CarMax. Shares of other major auto retailers also slid on Thursday, as investors and analysts often view CarMax’s results as a bellwether for the broader used-car market.

Companies such as Group 1 Automotive, AutoNation, Sonic Automotive, and Lithia Motors all saw their shares fall between 2% and 6% following the news, reflecting growing concerns about slowing consumer demand and tightening margins across the industry.