CarMax(US:KMX) Globenewswire·2025-12-12 23:30Core 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, leading to a substantial drop in share price [2][3][4]. Financial Performance - CarMax reported a revenue decline of 6.0% year-over-year for Q2 2026, with total retail used vehicle revenues down 7.2% and total gross profit declining by 5.6% [2]. - The company experienced a $71.3 million increase in loan loss provisions, impacting overall financial results [2]. Share Price Impact - 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]. Allegations in the Lawsuit - The class action complaint 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]. - It is claimed that the earlier growth in the 2026 fiscal year was a temporary effect driven by customer speculation regarding tariffs, which was not disclosed to investors [4]. Legal Proceedings - Investors who purchased CarMax securities between June 20, 2025, and November 5, 2025, are eligible to file a lead plaintiff motion by January 2, 2026, in the ongoing class action lawsuit [1][5].