01:02 PM EST, 11/06/2025 (MT Newswires) -- CarMax ( KMX ) said Thursday that longtime Chief Executive Bill Nash is stepping down, while the used-vehicle retailer reported downbeat preliminary fiscal third-quarter results, sending its shares tumbling.

The company named board member David McCreight as interim CEO, with Nash to depart as CEO and a board member, effective Dec. 1. Chair Tom Folliard will become interim executive chair. Nash spent more than 30 years at CarMax ( KMX ), Folliard said.

For the fiscal quarter through Nov. 30, the retailer anticipates net earnings to be in a range of $0.18 to $0.36 a share, including $0.09 of nonrecurring expenses associated with the leadership change and customer experience center workforce reductions. The current consensus on FactSet is for GAAP EPS of $0.66. The company expects comparable store used unit sales to decline by 8% to 12% for the quarter. Wall Street is looking for a same-store sales drop of 3.4%

CarMax ( KMX ) shares plunged 21% in Thursday afternoon trade. The stock has declined nearly 61% so far this year.

The company's recent results don't reflect its true potential and signaled a need for change, Folliard said in a statement. "The board has decided that more direct involvement from David and me will help strengthen the business in this transitional period." The new leadership team will focus on "driving sales, enhancing profitability and reducing cost," during the transitional period, Folliard added.

Truist Securities said it believes CarMax's ( KMX ) strategic positioning has been "increasingly comprised" on various fronts. The company has let rival Carvana ( CVNA ) to gain "material mindshare" with consumers, as it didn't "react quickly or aggressively enough to the trend towards online transactions," the brokerage said in a note to clients.

Truist said it will be important for CarMax's ( KMX ) new management to improve the value of the deals they offer to customers. This could result in gross margin deterioration, while "additional earnings pain may ensue," according to the note.

CarMax ( KMX ) said its third-quarter results took a hit from a decrease in retail unit sales, a "sharp" depreciation in the wholesale business, and a projected materially higher year over year marketing spend.

The company is scheduled to release third-quarter results Dec. 18.

Price: 32.87, Change: -7.94, Percent Change: -19.46