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We’re rounding the track on Friday as we cover CarMax’s latest bumpy road. We also talk about Ford’s truck wave as well as a massive nine figure trick shot from creators Dude Perfect.
Show Notes with links:
- CarMax is facing significant headwinds amidst high interest rates and fewer cars purchased directly from customers. The company reported a marginal increase in comparable store used-car unit sales of 0.1% for Q4, underperforming against analyst expectations of 0.36% growth.
- Net income for the quarter fell by 27%, sharply contrasting with analysts’ forecasts of an 8.4% increase, leading to a 13% drop in CarMax shares.
- High interest rates have deterred buyers, pushing them towards newer and more affordable cars, exacerbated by a supply shortage of newer used cars, which isn't expected to improve until late 2025.
- CarMax has focused on preserving profitability rather than market share expansion, with CarMax Auto Finance seeing a 19% growth in income due to reduced loan loss provisions.
- Originally planning to hit the 2M cars per year mark by 2026, the company has now pushed that target out to 2030
- "Affordability will be the key driver of our future success," noted CarMax executives, as the company revises its vehicle sales targets amidst ongoing economic challenges.
- Ford has announced it will finally be shipping 144,000 redesigned F-150 and Ranger pickup trucks to North American dealers, following a quality assurance delay.
- The automaker is also resuming shipments of the F-150 Lightning electric trucks, with price cuts on some variants by up to $5,500.
- Originally Initiated due to past warranty costs ($4.8 billion in 2023), this cautious approach was intended to avoid electronic issues detected in pre-shipment inspections.
- These shipments are pivotal for Ford to meet its ambitious 2024 pre-tax profit goal of $10 to $12 billion, reinforcing confidence expressed last month
- And for the $100 million dollar trick shot, YouTube sensation Dude Perfect is scoring a massive investment to expand their empire into a Texas-sized headquarters and beyond. With plans to transform digital fun into a family-friendly destination, the group is setting up to score big, not just online, but in real-world entertainment, merch, beverages and beyond.
- The investment will fund a new headquarters in Frisco, Texas, featuring a trick-shot tower, museum, mini-golf, and more, aiming to create a family-friendly entertainment hub.
- Initiatives include an international tour, a new streaming app, and an ESPN "30 for 30" documentary premiering on April 25.
- Known for their faith-based mission and philanthropic efforts, Dude Perfect continues to focus on "serving families with the most trusted entertainment on earth."
- Dude Perfe
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