Poorly Run CarMax (KMX) “Misjudged” The Market, Says Jim Cramer

Core Viewpoint - CarMax, Inc. (NYSE:KMX) has faced significant challenges, including a 24% drop in stock price following the announcement of its CEO stepping down and a disappointing earnings outlook for the fiscal third quarter [1]. Group 1: Company Performance - CarMax's stock fell by 24% on November 6 after the CEO resignation announcement [1]. - The company expects to earn between $0.18 to $0.36 for the fiscal third quarter, which is below analyst estimates of $0.36 [1]. - Management plans to focus on sales growth and cost reduction while searching for a new CEO [1]. Group 2: Market Analysis - Jim Cramer criticized CarMax for being poorly run and misjudging the market, contributing to a wholesale auto glut [2]. - The issues faced by CarMax are reflected in broader economic indicators, such as the Consumer Price Index (CPI) [2].