Driving the news: CarMax $KMX ( ▼ 21.66% ) CEO Bill Nash is stepping down effective December 1 after the nation's largest used car retailer posted weak preliminary third-quarter results, sending shares down 10% in premarket trading Thursday.
The details: The board is bringing back heavy hitters to stabilize the business during the CEO search, per a company announcement.
Board member David McCreight, a retail executive with CEO experience at Lulu's Fashion Lounge and president roles at Urban Outfitters, becomes Interim President and CEO.
Tom Folliard, who led CarMax as CEO from 2006-2016, moves from board chair to Interim Executive Chair.
Worth noting: CarMax’s stock has cratered 50% in 2025, while competitor Carvana is up 52% over the same period.
What they're saying: "The Board has decided that more direct involvement from David and me will help strengthen the business in this transitional period," said Folliard. "During this time, we are focused on driving sales, enhancing profitability and reducing cost."
Looking ahead: The company’s next earnings call on December 18, will likely expose the true depth of CarMax’s structural issues.
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