CarMax Inc. Announces Significant Leadership Changes Amidst Financial Challenges

In a surprising turn of events, CarMax, Inc. (NYSE: KMX), the nation’s largest used car retailer, has announced leadership changes aimed at revitalizing its operations. David McCreight, a board member with extensive retail experience, has been appointed Interim President and Chief Executive Officer, effective December 1, 2025. Simultaneously, Tom Folliard, the current Chair of the Board and a veteran executive with a rich history at CarMax, will assume the role of Interim Executive Chair of the Board. This change comes as the company grapples with disappointing financial results and is a pivotal moment in CarMax's journey.

Bill Nash, who has led the company as CEO, will step down from his position and relinquish his board membership. This transition follows an acknowledgment from Folliard that the recent performance of CarMax has not met expectations, prompting the need for strategic change. Folliard remarked, “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 costs.”

David McCreight brings over two decades of executive leadership to his new role. His background includes significant positions at various prominent brands, including Urban Outfitters and Anthropologie, where he successfully spearheaded brand transformations and omni-channel initiatives. McCreight has been a part of CarMax’s Board since 2018 and is well-versed in the company's operations and strategic goals. He expressed his commitment to steering CarMax through this transitional phase, stating, “I am honored to serve as the Interim CEO at a critical point in CarMax’s history.”

Tom Folliard’s tenure at CarMax spans more than 30 years, including a decade as CEO from 2006 to 2016. His extensive knowledge and experience in the company are expected to be invaluable during this transitional period. Folliard emphasized the importance of addressing the company’s recent struggles, which he attributes to changing market dynamics.

As part of the press release, CarMax also provided a preliminary outlook for its upcoming third fiscal quarter ending November 30, 2025. The company anticipates a decline in comparable store used unit sales by 8% to 12%. Moreover, net earnings per diluted share are expected to range between $0.18 and $0.36. This forecast includes $0.09 in non-recurring expenses related to the leadership changes and workforce reductions at the Customer Experience Center.

CarMax's financial outlook reflects several challenges, including a drop in retail unit sales and a notable depreciation in the wholesale business. Additionally, the company has increased marketing expenditures to support a new brand positioning launching this quarter. However, CarMax Auto Finance's loan loss provision remains in line with previous expectations, indicating some stability in its financial services segment.

CarMax is committed to a thorough search for a permanent CEO, a process that is being assisted by the leading professional search firm, Russell Reynolds Associates. The Compensation and Personnel Committee, with support from Folliard, will oversee this search.

The company is scheduled to release its full financial results for the third quarter of fiscal year 2026 on December 18, 2025, just before the market opens. As CarMax navigates these changes, stakeholders will be closely monitoring how the new leadership will steer the company towards recovery and growth.

The leadership changes at CarMax come at a critical moment as the company confronts significant financial headwinds. With seasoned executives like McCreight and Folliard at the helm, there is cautious optimism about CarMax's ability to adapt and thrive in an evolving automotive retail landscape. As the search for a permanent CEO unfolds, investors and consumers alike will be watching closely to see how these transitions impact CarMax's performance and strategic direction in the months to come.