CarMax Inc. shares dropped over 20% after announcing a weak outlook for the current fiscal quarter, with an 8-12% decrease in used unit sales and earnings per share between 18-36 cents. CEO Bill Nash is stepping down, to be replaced by David McCreight and interim executive chair Tom Folliard.

The changes at CarMax are effective Dec. 1, with William Blair downgrading the stock to market perform. CarMax’s stock has fallen 50% in 2025, in contrast to other car retailers like Carvana, which saw a 52% increase. Nash admitted recent results were disappointing, leading to negative analyst reactions and a decline in shares.

CarMax is set to report its current fiscal quarter results on Dec. 18. The company is focused on driving sales, enhancing profitability, and reducing costs during this transitional period. The Board believes that more direct involvement from David McCreight and Tom Folliard will help strengthen the business.

Read more at CNBC: CarMax stock falls 20% as CEO steps down, releases outlook