CarMax(US:KMX) Globenewswire·2025-11-10 19:08Core Viewpoint - CarMax, Inc. is facing a class action lawsuit due to significant declines in revenue and profit, which were attributed to inventory adjustments and increased loan loss provisions [2][4]. Financial Performance - For the second quarter of fiscal year 2026, CarMax reported a revenue decline of 6.0% year-over-year, with total retail used vehicle revenues down by 7.2% and total gross profit declining by 5.6% [2]. - The company experienced a $71.3 million increase in loan loss provisions, impacting its financial results [2]. Stock Market Reaction - Following the release of the disappointing financial results, CarMax's share price fell by $11.45, or 20.1%, closing at $45.60 per share on September 25, 2025 [3]. Lawsuit Details - The class action lawsuit alleges that CarMax's management made materially false and misleading statements regarding the company's growth prospects, which were overstated and not reflective of the actual business conditions [4]. - The lawsuit claims that the positive statements made by the defendants lacked a reasonable basis and failed to disclose adverse facts about the company's operations and future prospects [4]. Legal Action - Investors who purchased CarMax securities during the specified class period (June 20, 2025, to September 24, 2025) have until January 2, 2026, to file a lead plaintiff motion in the class action lawsuit [1][5].