CarMax plunges on weak preliminary sales results and the sudden firing of its CEO
CarMax shares are down more than 11% in premarket trading on Thursday following the sudden termination of its CEO, Bill Nash, who’d served as chief executive for nine years.
The announcement came as CarMax posted preliminary third-quarter results, including an expected comparable-store unit sales decrease of 8% to 12%.
“CarMax is the nation’s largest used car retailer because we have built a business that customers trust,” said CarMax Board Chair Tom Folliard, who has been named the company’s interim CEO. “However, our recent results do not reflect that potential and change is needed.”
Folliard previously served as CarMax’s CEO for 10 years until Nash succeeded him.
The leadership change comes as CarMax rival Carvana closes its unit sales gap quarter by quarter. Despite selling more used vehicles, CarMax’s market cap is less than a tenth of Carvana’s.
“CarMax is the nation’s largest used car retailer because we have built a business that customers trust,” said CarMax Board Chair Tom Folliard, who has been named the company’s interim CEO. “However, our recent results do not reflect that potential and change is needed.”
Folliard previously served as CarMax’s CEO for 10 years until Nash succeeded him.
The leadership change comes as CarMax rival Carvana closes its unit sales gap quarter by quarter. Despite selling more used vehicles, CarMax’s market cap is less than a tenth of Carvana’s.
