DETROIT – Shares of CarMax Inc. fell 24% trading Thursday after the used car retailer announced a weak preliminary outlook for its current fiscal quarter and said CEO Bill Nash would be unexpectedly stepping down.

The preliminary outlook for its third fiscal quarter includes an 8% to 12% decrease in comparable store used unit sales and net earnings per diluted share of between 18 cents and 36 cents, including 9 cents in non-recurring expenses related primarily to the leadership shakeup and other workforce reductions.

Regarding its CEO, the company said board member David McCreight, a retail clothing executive who has served as CEO of Lulu’s Fashion Lounge Holdings and president of Urban Outfitters Inc., will replace Nash on an interim basis until a permanent replacement has been found.

CarMax also said Chair Tom Folliard, an executive with a 30-year history with the company, including as CEO from 2006 to 2016, has been appointed interim executive chair.

“The Board has decided that more direct involvement from David and me will help strengthen the business in this transitional period. During this time, we are focused on driving sales, enhancing profitability and reducing cost,” Folliard said in a release, adding that the company’s recent results “do not reflect that potential and change is needed.”

The announced changes are effective Dec. 1, according to CarMax.

In connection to the announced changes and outlook, William Blair downgraded CarMax stock to market perform from outperform.

CarMax has struggled this year, with its stock price down roughly 50% in 2025. That compares with other car retailer stocks being up double digits, including a 52% increase this year for online used car retailer Carvana.

Nash on CarMax’s most recent quarterly earnings call in September admitted that results that “fell short” of the company’s expectations, as well as Wall Street’s. The results included notable declines in nearly all key earnings including sales, net earnings and gross profit.

Those September results led to a significant decline in shares of the company and negative analyst reactions, including a $24 price cut by Morgan Stanley.

CarMax is scheduled to report its current fiscal quarter results on Dec. 18.