CarMax Inc. (NYSE:KMX) reported first-quarter fiscal 2027 earnings and revenue above Wall Street expectations, but the stock fell in Wednesday’s premarket trading as investors focused on margin pressure and declining gross profit per retail used vehicle.

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The used-car retailer reported adjusted earnings of $1.31 per share, exceeding the analyst consensus estimate of 94 cents. Revenue increased 6.2% year over year to $8.01 billion, beating analysts’ expectations of $7.41 billion.

Gross profit declined 4.4% from a year earlier to $854.4 million. Retail used-vehicle gross profit fell 9.5%.

Gross profit per retail used unit declined $230 year over year to $2,177 from last year’s record level. The company said the decrease reflected pricing actions intended to support stronger sales trends.

CarMax did not repurchase any shares during the quarter. As of May 31, approximately $1.31 billion remained available under its share ...