CarMax, Inc. (KMX) Shares Fall Again Amid Disclosure of Expected Comparable Store Unit Sales Decline, Class Action Pending -- Hagens Berman

Core Viewpoint - CarMax, Inc. has faced significant challenges, including the firing of CEO Bill Nash and a bleak outlook for Q3 2026, leading to a sharp decline in share prices and raising concerns about the company's business model and growth prospects [1][6]. Financial Performance - CarMax reported a 24% year-over-year decline in net EPS for Q2 2026, with retail used unit sales down 5.4% and comparable store used unit sales down 6.3% [4]. - The company's CarMax Auto Finance (CAF) revenue decreased by 11.02% year-over-year, attributed to a $142 million loan loss provision, which marked a nearly 40% sequential increase and a 24% year-over-year rise [5]. Legal and Regulatory Issues - A securities class action lawsuit is underway, focusing on allegations that CarMax misled investors regarding its business model and growth prospects during the Class Period from June 20, 2025, to November 5, 2025 [2][3]. - The lawsuit claims that CarMax's positive Q1 2026 results were misleading, as they were influenced by consumers accelerating car purchases to avoid tariffs [3]. Management Changes - The termination of CEO Bill Nash on November 6, 2025, coincided with the announcement of an expected decline in Q3 comparable store used unit sales by 8% to 12% from the previous year [1][6].