America's Car-Mart Q1 revenue falls sharply on inventory constraints
CRMT•Credit performance and outlook
America's Car-Mart said net charge-offs and delinquencies rose due to portfolio contraction, customer cost pressures, and a transition to centralized collections.
The company said resolving its capital structure remains its first priority.
Q1 revenue and loss miss estimates
US used car dealer America's Car-Mart said fiscal first-quarter revenue fell 57% year over year as inventory shrank sharply.
The company reported revenue of $145.75 million, compared with the consensus estimate of $253.03 million from two analysts. Adjusted loss per share was $6.65, versus the consensus estimate of $0.77 from one analyst.
Capital constraints weighed on sales and inventory
The company attributed the declines to capital constraints, not demand, and said limited capacity to purchase inventory and fund originations drove sharp declines in retail units sold and revenue.
It also said an inventory drawdown and dealership consolidations reduced vehicles available for sale, further limiting sales volume.
