CarMax announced that CEO Bill Nash will step down and leave the board effective December 1, 2025, and that board member David McCreight will serve as interim president and CEO until a permanent replacement is found.
The change follows preliminary guidance for the third fiscal quarter of 2026, which projects an 8%–12% decline in comparable‑store unit sales and a diluted earnings‑per‑share range of $0.18 to $0.36—well below the consensus estimate of $0.71. In contrast, the company’s comparable‑store unit sales grew 4.3% in the third quarter of 2025 and fell 4.1% in the third quarter of 2024, underscoring a sharp reversal in momentum.
CarMax has outlined a $150 million SG&A reduction program to be completed over the next 18 months, driven by technology investments and workforce reductions at its customer‑experience center. The plan is intended to offset margin pressure from higher acquisition costs, competitive pricing, and inventory depreciation that have eroded profitability in the used‑car market.
Investor sentiment has turned negative, with several analysts downgrading the company and cutting price targets in response to the leadership change and the weak outlook. The market reaction reflects concerns about the company’s ability to reverse declining sales volumes and restore profitability amid a challenging macro environment.
Tom Folliard, the interim executive chair, said the board believes “more direct involvement from David and me will help strengthen the business in this transitional period” and that the focus will be on “driving sales, enhancing profitability and reducing cost.” McCreight added that he is “honored to serve as interim CEO at a critical point in CarMax’s history” and that the board is “confident we can strengthen CarMax as we search for a permanent CEO.”
The announcement signals a strategic shift. Margin compression, driven by pricing pressure and higher operating costs, has forced CarMax to accelerate cost‑cutting and explore new growth initiatives. While the company’s long‑term prospects remain uncertain, the interim leadership’s focus on cost discipline and technology‑enabled efficiency could position CarMax to regain market share once the used‑car market stabilizes.
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