Why Car-Mart Stock Dropped This Week
Car-Mart's (NASDAQ: CRMT) stock price fell this week, declining 14% through the close of Thursday trading compared to a 1.6% drop in the broader market, according to data provided by S&P Global Market Intelligence. However, the regional vehicle retailer's stock is still up 13% year to date and beating the market.
This week's drop was sparked by a fiscal third-quarter 2023 update that left Wall Street wanting more.
Car-Mart on Wednesday revealed that comparable-store sales rose just 1% in its fiscal third quarter, which ended Jan. 31. Many of its dealerships saw pricing pressures and weak demand. Gross profit per vehicle dove to 33.6% of sales, for example, compared to 36.7% of sales a year earlier. Car-Mart achieved only a modest 3% uptick in volume compared to the prior quarter's 7% increase.
Source Fool.com
