What's Happening?
CarMax, Inc. has announced significant leadership changes to strengthen its business. David McCreight, a member of the Board of Directors, has been named Interim President and Chief Executive Officer.
Concurrently, Tom Folliard, current Chair of the Board, has been appointed Interim Executive Chair of the Board. Current CEO Bill Nash is stepping down from his position and as a member of the Board. These changes are effective as of December 1, 2025. The search for a permanent CEO is being supported by Russell Reynolds Associates and overseen by the Compensation and Personnel Committee.
Why It's Important?
CarMax is the nation’s largest used car retailer, and these leadership changes come at a critical time as the company faces challenges in driving sales, enhancing profitability, and reducing costs. The interim leadership aims to stabilize the company and prepare it for future growth. The changes reflect the need for strategic adjustments to align with market demands and improve financial performance. The leadership transition is expected to impact CarMax's operations, employee morale, and investor confidence.
What's Next?
CarMax has provided a preliminary financial outlook for the third fiscal quarter ending November 30, 2025, expecting a decrease in comparable store used unit sales and net earnings per diluted share. The company will report its full fiscal year 2026 third quarter financial results on December 18, 2025. The interim leadership will focus on driving sales, enhancing profitability, and reducing costs during this transitional period.
