Car-Mart’s CEO Departs

Long-time CEO of America’s Car-Mart, Jeff Williams, announced his departure on Tuesday. This announcement coincided with the release of the company’s first-quarter financial results, which fell short of earnings estimates primarily due to loan losses.

Williams, who previously held the positions of Chief Financial Officer and President, took over as CEO after Hank Henderson, the company’s prominent frontman, departed at the end of 2017. Williams will continue to serve as CEO emeritus until the end of the fiscal year 2024 and retain his position on the board of directors.

Doug Campbell, the current President of Car-Mart based in Rogers, will assume the role of CEO starting from October 1st. He assumed the role of President in October 2022 and brings over 25 years of industry experience, including his time with Avis Budget Group, Auto Nation, and Coral Springs Auto Mall in Florida.

During a conference call discussing Car-Mart’s quarterly results, Williams emphasized that the timing of this transition aligns with the company’s succession plan. He believes that staying on as CEO emeritus for a full year will ensure a seamless transition.

This change in leadership follows four consecutive quarters of missed profit forecasts by analysts. Car-Mart’s customer base primarily consists of individuals with poor or limited credit, and they are facing challenges posed by inflation and persistently high used car prices.

The announcement of Williams’ departure led to a significant drop in Car-Mart’s shares, which closed at $98 per share, down by $15.53 or nearly 14% in Tuesday’s Nasdaq trading. The company’s shares have ranged from a low of $54.24 to a high of $127.96 in the past year.

Williams noted that while the pressures on the company’s key customers appear to be easing, historically, many of them continue to face financial difficulties, often living paycheck to paycheck. CFO Vickie Judy added that although Car-Mart’s key customers remain employed and their wages have increased, they are still grappling with strong inflationary pressures. Additionally, they are relying more on credit than in recent years and do not have stimulus payments to help cover their expenses.

During the conference call, Williams mentioned that Car-Mart’s competitors were struggling in the current economic environment, with some larger and well-established companies looking to exit the industry. He indicated that Car-Mart is prepared to seize acquisition.

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