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Car-Mart Reports Falling Profits for Seventh Consecutive Quarter

2 min read

America’s Car-Mart Inc. of Rogers (Nasdaq: CRMT) on Tuesday reported falling profits in its fiscal fourth quarter, the seventh straight quarter the auto retailer’s income has declined.

Income was $416,000, down from $2.1 million in same period a year ago. Earnings per share came to 6 cents, down from 32 cents.

The results matched Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was also for earnings of 6 cents per share.

The company said revenue for the quarter was $364.7 million, down 5.7% from $386.9 million n the same quarter a year ago.

For the fiscal year ending April 30, America’s Car-Mart posted a loss of $31.4 million, down from a profit of $20.4 million the previous year. Revenue was $1.39 billion, down slightly from $1.4 billion.

The company reported a loss per share of $4.92 for fiscal 2024, down from a profit of $3.11 a year ago.

“Our sales results improved sequentially but fell short of our internal expectations for the quarter,” CEO Doug Campbell said in a statement.

Campbell said the company improved several metrics, such as having better down payments and gross margins. He also said America’s Car-Mart acquisition of Texas Auto Center, a dealership with locations in Austin and San Marcos, closed in early June.

“Despite these positives, the persistent inflationary environment driven by macro trends disproportionately impacted our customer base,” Campbell said. “In the upcoming year we are confident in our multi-pronged approach to lower overall vehicle costs and improve affordability for our consumers.”

America’s Car-Mart reported selling 15,251 vehicles in the fourth quarter, down from 17,655. The average sales price was $19,256, up from $18,133. Same-store revenue growth was a negative 5.3% for the quarter, down from 12.2%.

For the fiscal year, America’s Car-Mart sold 57,989 vehicles, down from 63,384. The average sales price was $19,113, up from $18,080; same-store revenue growth was a negative 1%, down from 16.7%.

Shares of the company fell about 8% Tuesday morning to $57.14. Year to date, shares were down more than 17%.

The Associated Press contributed information to this report.

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