CarMax to stop buying back stock until business, economy improves

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CarMax to stop buying back stock until business, economy improves
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CarMax decides to stop buying back stock until the used car business, macro backdrop improves

CarMax Inc. said Thursday that it has decided to stop buying back its stock, as it will take a conservative approach to its finances until the used car market and the economic backdrop improves.

The pause in repurchases comes as the used car seller reported a fiscal third-quarter profit and sales that fell well short of expectations, citing “vehicle affordability challenges.” The stock KMX slumped 7.1% in midday trading, putting it on track for the lowest close since April 2020.

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