On the Dash:
- CarMax projects an 8%–12% drop in comparable used vehicle sales and EPS of 18–36 cents for Q3.
- CEO Bill Nash resigns unexpectedly; David McCreight and Tom Folliard take interim leadership roles.
- Shares are down 50% in 2025, underperforming peers such as Carvana, as investors monitor the company’s strategy.
The largest used-car retailer in the U.S., CarMax, saw its shares drop 10% in premarket trading on Thursday after announcing a weak preliminary outlook for its third fiscal quarter and the unexpected resignation of CEO Bill Nash.
Additionally, the company appointed David McCreight, a retail executive and former CEO of Lulu’s Fashion Lounge, as interim CEO, while Tom Folliard, the former CarMax CEO, will serve as interim executive chair. Both appointments take effect on December 1.
The retailer expects an 8% to 12% decline in comparable-store used-unit sales for the quarter, with net earnings per diluted share projected between 18 cents and 36 cents. These figures include 9 cents in non-recurring expenses, primarily tied to the leadership transition and other workforce reductions. Folliard emphasized the board’s focus on boosting sales, improving profitability, and reducing costs during the transitional period.
Ultimately, CarMax’s stock has fallen roughly 50% in 2025, lagging behind other auto retailers, including Carvana, which is up 52% this year. Notably, the company’s most recent quarterly results in September fell short of both internal and Wall Street expectations. CarMax is set to release its current fiscal quarter results on December 18.
