Shares of CarMax Inc. fell $2, or 11 percent, yesterday after it reported a 55 percent plunge in 1Q net income. The used-car retailer said that wholesale-market prices for trucks and sport utility vehicles declined nearly 25 percent in the past three months, well above the expected depreciation, as consumers react to high fuel prices and a weak economic outlook, reports the Wall Street Journal.

"It's the longest-lasting depreciation of any segment we have ever seen, and I don't know when it will turn," said CEO Tom Folliard, adding that prices are bound to fall further.

U.S. auto makers are scaling back production of large vehicles that have been their main source of sales and profits. According to the Wall Street Journal, the CarMax numbers suggest that shift can't happen fast enough.

Folliard said the market deteriorated significantly in late May and early June. CarMax is buying trucks and SUVs but offering far less than in the past because the price at which it can sell the vehicles at the dealership or at auction has markedly fallen. The Journal quoted Folliard as saying that CarMax "could be chasing the market down for some time before it stabilizes."

The article offered no insight as to whether CarMax would slow its aggressive expansion into new geographical markets in response to lower profits. Despite the grim profit news, the company reported that revenues actually rose 3 percent thanks to continued gain in market share and a 1 percent increase in comparable store used unit sales.