The used-car retailer faces leadership turmoil, falling sales, and a sharp market downgrade amid ongoing pressure from industry rivals.
CarMax Inc. shares fell 24% on Thursday after the company issued a weak preliminary outlook for its fiscal third quarter and announced that CEO Bill Nash will step down effective December 1.
The used-car giant warned of an 8% to 12% drop in comparable-store sales and projected net earnings per share between 18 and 36 cents, including 9 cents in non-recurring expenses tied to the leadership transition and workforce reductions.
CarMax board member David McCreight, a veteran retail executive who previously led Lulu’s Fashion Lounge and served as president of Urban Outfitters, will take over as interim CEO, while longtime company leader Tom Folliard—who served as CEO from 2006 to 2016—will become interim executive chair.
“The Board has decided that more direct involvement from David and me will help strengthen the business in this transitional period,” Folliard said. “Recent results do not reflect our potential, and change is needed.”
The announcement prompted William Blair to downgrade CarMax stock from Outperform to Market Perform, citing weakening fundamentals and competitive pressure.
CarMax stock is now down roughly 50% in 2025, even as rivals like Carvana have surged more than 50% this year. Analysts point to slowing consumer demand, tightening credit, and persistent affordability challenges in the used-car market.
The company will release full third-quarter results on December 18, a report that analysts say will be key to determining whether the company can stabilize under its new leadership team.
