CarMax(US:KMX) Businesswire·2025-12-31 18:51Core Viewpoint - CarMax, Inc. is facing a securities fraud 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 its share price [2][3][4]. Financial Performance - For the second quarter of 2026, 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% [2]. - The company attributed these declines to inventory adjustments and a $71.3 million increase in loan loss provisions [2]. Share Price Impact - Following the financial results announcement on September 25, 2025, CarMax's share price fell by $11.45, or 20.1%, closing at $45.60 per share [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]. - Specifically, 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]. Participation Information - Investors who acquired CarMax securities between June 20, 2025, and November 5, 2025, have until January 2, 2026, to seek appointment as lead plaintiff in the class action lawsuit [5].