CarMax Stock Plummets 23% Amid CEO Exit and Weak Earnings Forecast
CarMax (KMX) shares plunged more than 23% following the unexpected departure of CEO Bill Nash, who steered the used-car retailer since 2016. The selloff accelerated after the company issued a dismal preliminary outlook for its fiscal third quarter, prompting multiple analyst downgrades.
Board member David McCreight, a retail veteran with two decades of experience, will assume interim CEO duties starting December 2025. The leadership vacuum compounds existing pressures as CarMax anticipates an 8-12% decline in used vehicle sales and EPS between $0.18-$0.36, including transition costs.
Market sentiment soured further with the appointment of former CEO Tom Folliard as Interim Executive Chair, despite the engagement of executive search firm Russell Reynolds Associates to find a permanent successor. The abrupt management shuffle exposes vulnerabilities in CarMax's operational continuity during sector-wide headwinds.
