CarMax Discusses Strategy to Drive Revenue Growth and Accelerate Market Share Gains at Its 2021 Analyst Day Event
May 06 2021 - 6:50AM
Business Wire
- Showcases digital transformation that supports the most
customer-centric omni-channel experience in the used auto
market
- Highlights opportunities to leverage leadership position as
CarMax expands its role and reach within the used auto
ecosystem
- Introduces new long-term targets including a roughly 75%
increase in revenues over the next 5 years
- Expects to sell 2 million cars per year, including retail and
wholesale combined, by fiscal 2026
CarMax, Inc. (NYSE: KMX), the nation’s largest and most
profitable retailer of used autos, is hosting a virtual Analyst Day
today. This event focuses on CarMax’s digital transformation,
advancement of its omni-channel strategy and the growth trajectory
ahead.
“We are excited about our long-term growth opportunities and the
excellent position we are in today,” said Bill Nash, CarMax’s
president and chief executive officer. “Over the past several
years, we have completely transformed our company into a digitally
enabled, omni-channel retailer while maintaining our leadership as
the top seller and buyer of used autos to and from consumers. We
are leveraging our proprietary tech stack, data advantage,
nationwide footprint, and culture of operational excellence to
deliver a best-in-class experience regardless of how customers want
to transact. With our core strengths across used auto retail,
wholesale and finance as a foundation, we are also expanding our
reach into the broader used auto ecosystem. We have set ambitious
long-term growth targets and are confident in our ability to
accelerate market share gains. We are excited about the
opportunities ahead of us as we continue to create sustainable
value for all of our stakeholders.”
Event Overview
During today’s event, we will focus on why CarMax is positioned
to win now and in the future, including:
- Our leadership position in a massive and highly fragmented
market with ongoing opportunities to gain share;
- Our distinct competitive advantages including our
differentiated scale, robust technology and extensive data;
- Our omni-channel experience with a digital first approach that
delivers the most customer centric offering in the market;
- Our ability to leverage competitive advantages and talent to
expand our reach within the used auto ecosystem through
investments, partnerships and acquisitions; and
- Our diversified operating and financial model that enables
highly profitable growth and sustainable shareholder value
creation.
In addition, presenters will provide insights into:
- Our award-winning culture as a key enabler of success and our
approach to talent management to support our transformation and
ongoing growth;
- Our product organization and its focus on innovation and
enhanced online capabilities, including self-service transactions
and the new Online Instant Appraisal Offer;
- How we accomplished our digital transformation and are using
technology, data science and machine learning to enable and
accelerate growth; and
- Ways we are amplifying the CarMax brand to drive awareness of
our omni-channel offerings.
Long-Term Targets
Over the next five years, we expect our diversified model, the
scale of our operations, our investments and omni-channel strategy
to provide a rock-solid foundation for further growth. As such, we
are introducing the following long-term targets:
- Grow national market share of 0- to 10-year-old vehicles to
more than 5% by the end of CY 2025, a roughly 50% increase from CY
2020
- Sell 2 million used autos per year by FY2026 through our retail
and wholesale channels combined, representing a CAGR of more than
10% from FY 2021
- Generate revenue of approximately $33 billion in FY 2026,
representing a 12% CAGR from FY 2021
Webcast Information
CarMax’s Analyst Day presentation will be webcast with
accompanying presentations starting at 9:00 a.m. Eastern Time (ET)
and is expected to conclude at 11:30 a.m. ET. The webcast and
presentation materials can be accessed through CarMax’s investor
relations website at investors.carmax.com. A replay of the webcast
will be available following the event.
About CarMax
CarMax, the nation’s largest retailer of used autos,
revolutionized the automotive retail industry by driving integrity,
honesty and transparency in every interaction. The company offers a
truly personalized experience with the option for customers to do
as much, or as little, online and in-store as they want. CarMax
also provides a variety of vehicle delivery methods, including home
delivery, contactless curbside pickup and appointments in its
stores. During the fiscal year ending February 28, 2021, CarMax
sold more than 750,000 used vehicles and more than 425,000
wholesale vehicles at its in-store and virtual auctions. In
addition, CarMax Auto Finance originated more than $6 billion in
receivables during fiscal year 2021, adding to its near $14 billion
portfolio. CarMax has more than 220 stores, approximately 27,000
Associates, and is proud to have been recognized for 17 consecutive
years as one of the Fortune 100 Best Companies to Work For®. For
more information, visit www.carmax.com.
Forward-Looking
Statements
We caution readers that the statements contained in this release
about our future business plans, operations, challenges,
strategies, long-term targets, opportunities or prospects,
including without limitation any statements or factors regarding
strategic transactions, sales, market share, margins, expenses,
liquidity, capital expenditures, revenue or earnings, are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
You can identify these forward-looking statements by the use of
words such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “outlook,” “plan,” “positioned,”
“predict,” “should,” “will” and other similar expressions, whether
in the negative or affirmative. Such forward-looking statements are
based upon management’s current knowledge and assumptions about
future events and involve risks and uncertainties that could cause
actual results to differ materially from anticipated results. Among
the factors that could cause actual results and outcomes to differ
materially from those contained in the forward-looking statements
are the following:
- The effect and consequences of the Coronavirus public health
crisis on matters including U.S. and local economies; our business
operations and continuity; the availability of corporate and
consumer financing; the health and productivity of our associates
and their access to effective vaccines; the ability of third-party
providers to continue uninterrupted service; and the regulatory
environment in which we operate.
- Changes in general or regional U.S. economic conditions.
- Changes in the availability or cost of capital and working
capital financing, including changes related to the asset-backed
securitization market.
- Changes in the competitive landscape and/or our failure to
successfully adjust to such changes.
- Events that damage our reputation or harm the perception of the
quality of our brand.
- Our inability to realize the benefits associated with our
omni-channel initiatives.
- Our inability to realize the expected benefits of strategic
transactions, including our proposed acquisition of Edmunds.
- Our inability to recruit, develop and retain associates and
maintain positive associate relations.
- The loss of key associates from our store, regional or
corporate management teams or a significant increase in labor
costs.
- Security breaches or other events that result in the
misappropriation, loss or other unauthorized disclosure of
confidential customer, associate or corporate information.
- Significant changes in prices of new and used vehicles.
- Changes in economic conditions or other factors that result in
greater credit losses for CAF’s portfolio of auto loans receivable
than anticipated.
- A reduction in the availability of or access to sources of
inventory or a failure to expeditiously liquidate inventory.
- Changes in consumer credit availability provided by our
third-party finance providers.
- Changes in the availability of extended protection plan
products from third-party providers.
- Factors related to the regulatory and legislative environment
in which we operate.
- Factors related to geographic and sales growth, including the
inability to effectively manage our growth.
- The failure of or inability to sufficiently enhance key
information systems.
- The performance of the third-party vendors we rely on for key
components of our business.
- The effect of various litigation matters.
- Adverse conditions affecting one or more automotive
manufacturers, and manufacturer recalls.
- The failure or inability to realize the benefits associated
with our strategic investments.
- The inaccuracy of estimates and assumptions used in the
preparation of our financial statements, or the effect of new
accounting requirements or changes to U.S. generally accepted
accounting principles.
- The volatility in the market price for our common stock.
- The failure or inability to adequately protect our intellectual
property.
- The occurrence of severe weather events.
- Factors related to the geographic concentration of our
stores.
For more details on factors that could affect expectations, see
our Annual Report on Form 10-K for the fiscal year ended February
28, 2021, and our quarterly or current reports as filed with or
furnished to the U.S. Securities and Exchange Commission. Our
filings are publicly available on our investor information home
page at investors.carmax.com. Requests for information may also be
made to the Investor Relations Department by email to
investor_relations@carmax.com or by calling (804) 747-0422 x7865.
We undertake no obligation to update or revise any forward-looking
statements after the date they are made, whether as a result of new
information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506005170/en/
Stacy Frole, Vice President, Investor Relations
investor_relations@carmax.com (804) 747-0422 ext. 7865
Media: pr@carmax.com, (855) 887-2915
CarMax (NYSE:KMX)
Historical Stock Chart
From Mar 2024 to Apr 2024
CarMax (NYSE:KMX)
Historical Stock Chart
From Apr 2023 to Apr 2024