Shares of CarMax (KMX -2.49%) are down 11.7% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the used vehicle retailer announced disappointing quarterly results and delayed a key long-term vehicle sales target.

On CarMax's underwhelming quarter

For CarMax's fiscal fourth quarter ended Feb. 29, revenue declined 1.7% year over year to $5.63 billion. On the bottom line, that translated to net earnings of $50.3 million, or $0.32 per share, down 27.3% from $0.44 per share in the same year-ago period. Analysts, on average, were modeling earnings of $0.46 per share on revenue closer to $5.81 billion.

Retail used unit sales grew 1.3% year over year, while used unit comparable-store sales rose a modest 0.1%. Wholesale units declined 4%.

CarMax bought 234,000 vehicles from consumers and dealers during the quarter, down 10.8% year over year from last year's historically strong fourth quarter. Of those vehicles, 213,000 were purchased from consumers (down 14.1% year over year), while CarMax increased the number purchased from dealers by 44.8% from last year's fourth quarter, to 21,000.

Meanwhile, CarMax Auto Finance (CAF) increased its income 18.9% year over year to $147.3 million, thanks largely to a lower provision for loan losses as the company tightened its lending standards.

CarMax CEO Bill Nash said he was "encouraged" by the company's performance to end the fiscal year, highlighting its growth in used unit sales and comparable sales.

What's next for CarMax investors?

"Our focus and progress have made our foundation stronger than ever and we are positioned well for the future," Nash added.

During the subsequent conference call, Nash explained that even as vehicle prices fell, sustained high interest rates have put pressure on consumers for other expenses such as food and housing. The follow-on effect of that pressure on CarMax's business is evident.

As such, CarMax delayed its previous standing target for selling over 2 million combined retail and wholesale units annually to between fiscal 2026 and fiscal 2030. Previously CarMax had hoped to reach the same goal by 2026.

That's not to say CarMax is a broken business. But this was an incrementally disappointing quarter punctuated by the delay of a key long-term goal. And it's hardly surprising to see CarMax stock pulling back in response.