CarMax shares plunged 20% today after the used-car giant reported a steep sales drop, as demand cooled last quarter following an earlier buying spree ahead of expected tariffs.

• 📉 The company surprised investors with a 6.3% decline in comp sales of used vehicles in the recent quarter.
• Investors had been expecting a 0.7% increase, according to Bloomberg.
• The company also posted a huge miss on profit and revenue for the quarter.

💸 Between the lines: Used-car values depreciated rapidly this summer as competitors were "aggressive" on pricing, CarMax CEO Bill Nash warned today.

• CarMax saw values slip by $1,000 per vehicle in a one-month period during the quarter, leaving the company with elevated prices that scared customers away.

🏃‍♂️‍➡️ The intrigue: Prices had been on the rise earlier this year when customers were rushing to buy vehicles ahead of tariffs.

• But during the latest quarter, CarMax's average selling price fell $250 year over year to $26,000.
• 🛻 Customers are seeking out "older, higher mileage vehicles," Nash said.

Yes, but: Cox Automotive is still projecting an average increase in prices of new and used vehicles of 4%–8% due to tariffs.

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Starbucks plans to close stores and lay off 900 people in a $1 billion restructuring move, Axios' Ben Berkowitz writes.

• ✂️ CEO Brian Niccol, in a memo to employees this morning, said the layoffs would be in "non-retail" roles, and that the company would also eliminate some open positions.
• 🏬 He did not say how many stores would be closed, and the company did not specify in an SEC filing, either.
• 📉 He did say the overall North American company-operated stores would decline by about 1% in fiscal 2025 after accounting for openings and closures.

The big picture: Starbucks is deep in a turnaround after prolonged sales declines.

• The stock slid 0.5% today, and it's down over 8% for the year.

Amazon will pay $2.5 billion in penalties and refunds to settle allegations that it enrolled unwitting customers for its Prime subscriptions and made it hard for them to cancel, Axios' Jeffrey Cane writes.

• 💵 Per the FTC, Amazon will pay a $1 billion civil penalty and provide $1.5 billion in refunds back to consumers.
• 💻 The company has also agreed to make changes to its website to make decisions easier for customers and to increase disclosures.

💭 Our thought bubble, via Axios' Ashley Gold: Yes, it's a high price tag, but the settlement is good news for Amazon. It does not have to continue with the trial and risk being found liable for wrongdoing.

Context: Amazon is still facing a broader antitrust suit from September 2023.

• That case is expected to come to trial in 2027.

🌾 President Trump indicated farmers could soon get a bailout funded by tariffs, one that could echo similar relief he provided in his first term. American farmers are being walloped by the trade war. (Axios)

🏭 German manufacturer Bosch is cutting 13,000 jobs globally, or about 3% of its workforce. The company's automotive supply operation is under pressure from tariffs and Chinese EVs. (Reuters)

🛍️ H&M's stock soared after the fashion retailer overcame trade barriers with tighter inventories and strong marketing leading to higher sales. (Bloomberg)

Robert Kraft has agreed to sell an 8% stake in the NFL's New England Patriots at around a $9 billion valuation to billionaire Dean Metropoulos and private equity firm Sixth Street Partners, a source familiar with the matter tells Axios' Dan Primack.

• This is the first time that Kraft has sold part of the team since he acquired it more than 30 years ago.

By the numbers: Metropoulos would hold a 5% stake, while Sixth Street would hold a 3% stake.

• The $9 billion valuation comes in just shy of the $10 billion mark recently fetched in a minority sale stake for the NFL's New York Giants.

The intrigue: This would be the first NFL deal for Sixth Street, which also recently bought part of the Boston Celtics.