CarMax Plunges on Used-Car Stress in Ominous Sign for Economy

CarMax Inc. shares tumbled the most in three years after the company’s weaker-than-expected results showed deepening strain in the used-car market.

The auto retailer pointed to fallout from President Donald Trump’s tariffs and rising distress among consumers as it reported falling sales and profit. Earnings of 64 cents a share in the fiscal second quarter fell well short of the $1.03 average of analysts’ estimates compiled by Bloomberg.

“There is very little redeeming in results today,” JPMorgan analyst Rajat Gupta said Thursday in a note.

The poor showing added to growing concerns around the auto industry, a key sector ...