Competitive Pressure From Digital RivalsAnalyst warns that rapidly scaling, well-capitalized online competitors with materially stronger unit economics are taking market and mind share, increasing pressure on margins and market position.
Margin Compression And Valuation RiskAnalyst expects that price-driven volume recovery could compress near-term retail gross profit and combined with heavy depreciation may keep pressure on margins and limit upside to the stock multiple.
Operational And Cultural RestructuringAnalyst emphasizes that CarMax requires deep cultural and operational changes to improve inventory sourcing, reconditioning quality, logistics, and store-level efficiency, a difficult and execution-sensitive undertaking.