America's Car-Mart posts Q1 earnings miss, shares dip 2%

ROGERS, Ark. - America's Car-Mart Inc. (NASDAQ:CRMT ) reported first quarter fiscal 2025 results that missed analyst expectations, sending shares down 2% in early trading.

The used car retailer and finance company posted a loss of $0.15 per share for the quarter ended July 31, compared to earnings of $0.63 per share in the same period last year. Analysts had expected earnings of $0.60 per share.

Revenue fell 5.2% YoY to $347.8 million, though this topped the consensus estimate of $337.68 million. The company said the revenue decline was primarily driven by a 9.6% decrease in retail units sold to 14,391 vehicles.

"I'm encouraged with our rebound in sales volume from two quarters ago, despite the ongoing economic challenges facing the customer today," said President and CEO Doug Campbell.

Gross profit margin improved slightly to 35% from 34.7% last year. However, net charge-offs as a percentage of average finance receivables increased to 6.4% from 5.8% a year ago.

The company said its new loan origination system contributed to higher down payments and improved deal structures during the quarter. Average down payments rose to 5.2% from 5.0% last year.

America's Car-Mart ended the quarter with 156 dealerships in operation, up from 154 a year earlier. The company's active customer count declined 1.4% YoY to 103,231.

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Source: Investing.com