CarMax (KMX, Financials) shares surged more than 6% Friday morning after the company posted better-than-expected first-quarter earnings, driven by the fastest growth in used-vehicle sales since 2021.
The company's performance comes amid a shift in consumer behavior following the imposition of new auto tariffs by President Donald Trump in March. The 25% tariff on foreign-made vehicles and certain auto parts has disrupted the supply of new cars in the U.S., increasing demand for used vehicles.
CarMax is one of the first major automotive retailers to show clear benefits from the policy change. The company's results suggest that pricing power and unit sales have improved as consumers seek alternatives to higher-priced new models.
With Friday's gains, CarMax stock is headed for its strongest single-day performance in two years.
