CarMax, Inc. (KMX) Investor Lawsuit Filed, Shares Fall Again Amid Disclosure of Expected Comparable Store Unit Sales Decline -- Hagens Berman

Core Viewpoint - CarMax, Inc. has faced significant challenges, including the termination of its CEO and a bleak outlook for Q3 2026, leading to a substantial drop in share price and investor losses [1][7]. Financial Performance - CarMax reported a 24% decline in net EPS year-over-year for Q2 2026, with retail used unit sales down 5.4% and comparable store used unit sales down 6.3% [5]. - The company's CarMax Auto Finance (CAF) revenue decreased by 11.02% year-over-year, attributed to a $142 million loan loss provision, marking a nearly 40% sequential increase and a 24% year-over-year rise [6]. Management Changes - The company announced the firing of CEO Bill Nash on November 6, 2025, which coincided with a forecasted decline in comparable store used unit sales of 8% to 12% for Q3 2026 [1][7]. Legal Issues - A securities class action lawsuit is underway, focusing on allegations that CarMax misled investors regarding its business model and growth prospects, particularly in light of its previous assurances of sustained earnings growth [3][4]. - The class period for the lawsuit spans from June 20, 2025, to November 5, 2025, with a lead plaintiff deadline set for January 2, 2026 [2][3].