CarMax(US:KMX) Businesswire·2025-11-06 17:00Core Viewpoint - CarMax, Inc. is facing a class action lawsuit due to significant revenue and profit declines reported in its second quarter 2026 financial results, which led to a substantial drop in share price [3][4][5]. Financial Performance - CarMax reported a revenue decline of 6.0% year-over-year, with total retail used vehicle revenues decreasing by 7.2% and total gross profit declining by 5.6% [3]. - The company attributed these declines to inventory adjustments and a $71.3 million increase in loan loss provisions [3]. Shareholder Impact - Following the financial results announcement, CarMax's share price fell by $11.45, or 20.1%, closing at $45.60 per share [4]. - Investors who purchased CarMax securities between June 20, 2025, and September 24, 2025, are encouraged to participate in the class action lawsuit [6]. Lawsuit Details - The lawsuit alleges that CarMax's management made materially false and misleading statements regarding the company's growth prospects, which were overstated and lacked a reasonable basis [5]. - The complaint highlights that the earlier growth in the 2026 fiscal year was primarily driven by temporary factors related to customer behavior influenced by tariff speculation [5].