plunged

Shares of used car giant CarMax (KMX -1.11%) plunged 26.9% in September, according to data from S&P Global Market Intelligence, drastically underperforming an otherwise positive month for the markets.

Not only is CarMax not a part of the AI tech stock cohort that saw massive interest in September, but the company also reported earnings during the month, which fell well short of expectations.

Image source: Getty Images.

CarMax reports declines and announces cost cuts

In its second quarter, CarMax reported revenue declines of 6% to $6.59 billion, and an earnings per share decline of 24.7% to $0.64. Both figures missed analysts’ expectations.

Management acknowledged the challenges of the current quarter, but pointed to new initiatives it anticipates will turn things around. The first is a cost-cutting initiative, by which management is seeking $150 million in selling, general, and administrative cost cuts over the next 18 months.

The second is on the marketing front, where CarMax unveiled its new “Wanna Drive?” campaign in August. The “Wanna Drive?” campaign highlights CarMax’s new omnichannel capabilities, a competitive reaction to online-first competitors such as Carvana (CVNA -2.22%) and others.

But while that all may sound promising, CarMax is fighting against an unfavorable macroeconomic environment. Late in September, the Conference Board reported a worse-than-expected decline in consumer confidence, with a reading of 94.2, down from 97.8 in the prior month and well below the 96.0 reading expected by economists.

Automobile purchases are big-ticket items, so consumers may hold off purchases if their confidence in the economy and their future prospects darkens. While the Federal Reserve did commence cutting interest rates in September for the first time in nine months, it likely did so in reaction to a weakening job market and economic outlook, even as inflation remains above its target.

Can CarMax turn it around?

After the September decline, CarMax looks somewhat cheap on the surface, now trading at 14 times this year’s earnings estimates and just 11.8 times next year’s earnings expectations.

It therefore appears CarMax may be a value stock that could be appealing to investors shying away from the high valuations of the AI and technology sector.

Of note, CarMax does have over $16.4 billion in debt, but that debt is backed up by roughly the equivalent amount of CarMax auto finance loans, which CarMax holds on its balance sheet, and from which it generates a positive interest rate spread.

So while CarMax shouldn’t be considered “heavily indebted,” its business is very economically sensitive, in that used cars are big-ticket items, while the auto loan financing business essentially functions like a bank. Overall, CarMax is also a low-margin business, with a net profit margin of just 1.4% last quarter.

So CarMax looks like a cheap stock at the moment, but investors need to bank on a cyclical recovery or stabilization in consumer spending for the stock to deliver on that promise.

Shares of packaged food giant The J.M. Smucker Company (SJM -3.89%) fell on Wednesday, declining as much as 9.3% before recovering to a 5.1% decline as of 1:05 PM EDT.

J.M. Smucker, home to a variety of food brands such as Smucker’s, Folgers, and Hostess, gave its fiscal-third-quarter earnings report this morning. The numbers missed expectations, with tariffs especially taking a bite out of the bottom line.

A tariff-related miss leaves a bitter taste

In the fiscal third quarter, J.M. Smucker’s revenue declined 1% to $2.1 billion, although absent the effect of divestitures over the past year, revenue would have actually increased 2%. On a more pessimistic note, adjusted (non-GAAP) earnings per share of $1.90 fell a more severe 22% from the prior year. Both top and bottom lines missed expectations.

But while the quarter came in a bit soft, management actually increased full fiscal year guidance, now expecting full-year revenue to grow between 3% to 5%, compared with 2% to 4% previously. While the earnings-per-share range with $9.00 per share at the midpoint was left unchanged, management also raised guidance for free cash flow by $100 million to $975 million.

The free cash flow uplift was nice to see, but was actually the result of tax benefits in the recently passed “big, beautiful bill.” Meanwhile, revenue gains are coming from price hikes, especially on coffee, in response to increased commodity prices, which have been affected by recent tariffs.

Image source: Getty Images.

Tariffs are clearly biting Smucker’s profits

While Smucker appears to be raising prices with some success, it doesn’t appear the increases are totally compensating for higher commodities and tariff impacts, as evidenced by the decline in earnings. This is especially true in the coffee segment, which makes up about a third of revenue and is the company’s largest. Unfortunately, that’s where tariffs on green coffee are hurting the most. And the tariff effect will get bigger because President Trump decided to institute a 50% tariff on Brazil at the end of July.

Still, shares trade for a low valuation, at just 11.5 times this year’s free-cash-flow guidance with a healthy 4% dividend yield. Assuming tariffs are a one-time cost, and that’s not a demanding valuation for investors.

AN OASIS fan says she slipped over just yards from where a man plunged to his death at the reunion concert.

The man – aged in his 40s – was understood to be sitting in the upper tier of the stadium when he plunged to his death at Wembley on Saturday night.

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The highest stands in the 90,000-seat venue are some 170ft above the ground.

Police and paramedics attended to the man but he was pronounced dead at the scene.

The Gallagher brothers said they were “shocked and saddened” to hear about the fan’s death.

Now, other fans have blasted the “deathtrap” Wembley stadium, calling for the venue to be “held accountable”.

Gig-goers who danced the night away to Wonderwall say they were forced to hobble along low railings with a steep drop and a “lethal” slippery floor that was “like an ice rink.”

Some are labelling it “horrendous” given “the amount of money they’ve spent on this new Wembley”.

Jade, 31, from Essex, was at the gig and stumbled in a domino effect of falling fans, suffering minor injuries.

A man a few rows up from her fell down, tumbling into her and knocking her down too.

“The floor was slippery from loads of spilled drinks,” she told The Sun.

“My bag got soaked. Everyone in the seated section was jumping and dancing and way drunker than other concerts.”

She fell onto the row in front of her about halfway through the concert, and people helped her up.

“I just got up and carried on. But today I have a dodgy ankle, a few bruises and hurt knees.”

“People were absolutely w***ered,” recalled another on Reddit.

“A bloke near us collapsed, tumbled over a couple of seats and had to be evacuated by the medics – everywhere you looked people were out of their minds.

“It occurred to me that all it would take is one wrong step up there and you’d be a goner.”

One fan said on Facebook: “You’d think a modern venue like Wembley would have sufficient guards for this kind of thing.”

“The top tier is bloody steep. It’s dreadful the barrier is so low,” added another on Facebook.

Not everyone agrees that the stadium is to blame.

One fan said on a fan group: “18 years worth of events, most with 90,000 people attending, and never an incident like it. It’s a tragic accident, and blaming it on the venue or security is ridiculous.”

An eyewitness to the fatal fall wrote on Facebook: “He fell from the top tier into our block. My friend’s daughter did CPR until the paramedics arrived.”

Another shaken onlooker, who was sitting just three seats away, recalled: “Hearing the bang and seeing the aftermath was just something that will stay with you forever.”

“The atmosphere was incredible,” commented a third on Facebook.

“We were nearing the end of the concert, when in the middle of Wonderwall, he fell right in front of us, a few metres away.

“It was very shocking and we left Wembley very upset.”

Oasis released a statement about the man, saying that they are “shocked and saddened to hear of the tragic death of a fan at the show last night.

“Oasis would like to extend our sincere condolences to the family and friends of the person involved.”

Before singing Live Forever on Sunday, Liam Gallagher appeared to pay his respects to the late fan.

He said: “This one’s for all the people who can’t be here tonight, but who are here if you know what I mean, and aren’t they looking lovely.”

But Liam has used that line before singing that hit song on the other tour dates.

In the gig after Ozzy Osborne passed away, the Britpop duo paid tribute by displaying an image of the Black Sabbath singer on stage during Live Forever, then dedicated Rock ‘n’ Roll Star, to Ozzy.

In a statement on Sunday, the Metropolitan Police confirmed a man in his 40s was pronounced dead at the scene after sustaining “injuries consistent with a fall”.

A Wembley Stadium spokesperson said: “Last night, Wembley Stadium medics, the London Ambulance Service and the police attended to a concert goer who was found with injuries consistent with a fall.

“Despite their efforts, the fan very sadly died.

“Our thoughts go out to his family, who have been informed and are being supported by specially trained police officers.

“The Police have asked anyone who witnessed the incident to contact them.

“Tonight’s Oasis concert will go ahead as planned.”

Saturday’s gig was the fourth of seven London shows on Oasis’ blockbuster reunion tour.

The band crashed ticket sites when they announced they were making a comeback last year – as more than 14 million fans tried to secure a seat at the highly-anticipated gigs.

Last month Liam and Noel reunited on stage in Cardiff for the first time since a backstage bust-up broke up the band 16 years ago.

The Britpop icons returned to their hometown of Manchester for five dates in July.

They performed a 23-song setlist of classic hits, including Wonderwall, Don’t Look Back in Anger and Live Forever to a roaring crowd of 80,000 people at Heaton Park.

They will head to America later this month before returning to London for two more gigs in September.

Wembley Stadium said in a statement to The Sun: “Wembley Stadium operates to a very high health and safety standard, fully meeting legal requirements for the safety of spectators and staff, and is certified to and compliant with the ISO 45001 standard.

“We work very closely and collaboratively with all relevant event delivery stakeholders – including event owners, local authorities, the Sports Ground Safety Authority and the police – to deliver events to high standards of safety, security and service for everyone attending or working in the venue.”

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