CarMax Slumps After Terminating CEO, Earnings Miss (1)

CarMax Inc. plunged after terminating its chief executive over lagging sales and a nosedive of the stock that halved the used-car retailer’s market value so far this year.

“We make car buying and selling simple, transparent, and personalized,” Chair of the Board Tom Folliard said in a Thursday statement. “However, our recent results do not reflect that potential and change is needed.”

Shares fell as much as 15% in early New York trading after the company said Chief Executive Officer William D. Nash would step from his role on Dec. 1, while a search for his replacement had been ...