America’s Car‑Mart, Inc. announced on January 13, 2026 that it has finished Phase 2 of its SG&A cost‑control strategy, consolidating 13 dealerships into higher‑performing nearby locations. The move follows the Phase 1 consolidation of five stores in November 2025, bringing the total number of closed locations to 18 across both phases.
The company’s Q2 FY2026 results provide context for the consolidation. Revenue rose 0.8% year‑over‑year to $350.2 million, while adjusted SG&A as a percentage of sales stood at 18.8%, above the 16.5% target. Gross margin fell 190 basis points to 37.5% from 39.5% the prior year, largely due to a 100‑basis‑point improvement in adjusted margin offset by a one‑time $20 million charge that included CECL reserve adjustments and store closure costs. The quarter ended with a net loss of $22.5 million, or an adjusted loss per share of $0.79, compared with a $5.08 million profit ($0.61 per share) in the same period last year.
Doug Campbell, President and CEO, said the footprint optimization reflects the company’s commitment to operational excellence and disciplined capital allocation. “By concentrating resources in our highest‑performing markets, we are positioning Car‑Mart to deliver improved returns while maintaining the exceptional customer experience that defines our brand,” he said. Jonathan Collins, CFO, added that the company is “proactively repositioning America’s Car‑Mart by investing in our infrastructure, optimizing our platform, and improving our capital structure,” noting $3.5 million in store impairment costs from the closures.
The consolidations are part of a broader effort to reduce SG&A and improve inventory utilization. Management expects the completed plan to generate approximately $31.4 million in annual savings, helping the company absorb credit‑loss volatility and support future growth initiatives. The strategy follows a $300 million term loan closure and repayment of a revolving line of credit in October 2025, which removed restrictive covenants and increased financial flexibility.
Analysts have responded to the announcement and the company’s recent earnings. Jefferies lowered its price target to $29 from $34 while maintaining a Hold rating; BTIG reiterated a Hold rating; and Stephens maintained a Buy rating but cut its target from $67 to $45. The mixed reaction reflects concerns about the company’s profitability challenges and the scale of its restructuring, balanced against confidence in the long‑term benefits of a leaner platform.
The consolidation signals a shift toward a more efficient, high‑margin business model, but the company remains under pressure from credit‑loss volatility and a competitive used‑car market. The company’s investment in technology, such as a new Salesforce‑backed collections system and a LOS V2 underwriting platform, aims to improve collections quality and support future growth. The near‑term impact of the restructuring is a loss, but the long‑term outlook hinges on the company’s ability to translate cost savings into margin expansion and to navigate the challenging credit environment.
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