Car-Mart posts Q1 loss, revenue dip; shares hit 52-week low

Rogers-based America’s Car-Mart Inc. posted a net loss and a revenue decline in the first quarter of fiscal 2025 amid a vehicle sales decrease and narrow price gains. The stock price fell to a 52-week low Wednesday (Sept. 4).

Before the markets opened Wednesday, the buy here, pay here used car dealer reported a net loss of $974,000, or a loss of 15 cents per share, in the quarter that ended July 31 from net income of $4.17 million or 63 cents per share, in the same period last year. Revenue declined by 5.2% to $347.76 million from $366.79 million.

Car-Mart missed earnings per share of 66 cents, based on a consensus of four analysts. The company beat revenue estimates of $338.78 million.

“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. “During the quarter, our new loan origination system (LOS) contributed to higher down payments and improved deal structures.”

Campbell noted improvements on several credit metrics. He also highlighted strategic priorities, including acquisitions like Texas Auto Center, “will strengthen our competitive position and along with cost control initiatives, can drive better results for the remainder of the fiscal year.” The acquisition, which was completed in June, added two dealerships to the company. As of July 31, Car-Mart had 156 stores, up two from the same time last year.

Following are first-quarter metrics compared to the same period last year:
• Vehicle sales fell by 9.6% to 14,391 from 15,912.
• Average retail sales price rose by 2.4% to $19,250 from $18,799.
• Net charge-offs increased by 0.6% percentage points to 6.4%.
• Accounts over 30 days past due fell to 3.5% from 4.4%.
• Active customers (loans) declined by 1.4% to 103,231.
• Gross margin increased by 0.3% percentage points to 35%.
• Net finance receivables rose narrowly to $1.12 billion from $1.11 billion.

Shares of Car-Mart (NASDAQ: CRMT) hit a 52-week low of $53.31 on Wednesday. The stock was trading mid-morning at $54.88, down $4.80 or 8.04%. In the past 52 weeks, the stock has ranged from $53.31 and $98.39.