Overview
- Jim Cramer said he would not own CarMax, calling the CEO departure shocking and the business really bad.
- CarMax shares plunged roughly 20% to 24% after the leadership news and reduced fiscal third‑quarter guidance.
- Management projected earnings of $0.18 to $0.36 for the quarter versus a $0.36 analyst consensus and said it will prioritize sales growth and cost cuts while it searches for a new CEO.
- Cramer said recent results were awful, citing sales 6% below Wall Street expectations, profit per car below forecasts, and big loan losses.
- He argued CarMax misjudged demand and contributed to a wholesale auto glut, adding that meaningful relief likely requires lower short‑term auto loan rates.