KMX - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Kim, and I will be your conference operator today. At this time, I would like to welcome everyone to the CarMax Fiscal 2019 Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank like Investor call Relations. now Kenny, to turn President, Vice to would over the Katharine I

Katharine Kenny

conference with Thanks, you Chief VP fiscal earnings and for and Executive joining I'm Kim, good Reedy, our XXXX morning, Officer; and CFO. fourth our President Nash, our Bill everyone. Tom Thank call. and here Executive quarter

pursuant management's Harbor forward-looking Let you that could forward-looking company's future events of cause statements, any prospects intent plans, business performance Securities the me on providing Act our are the to from Litigation that Safe remind that of statements to assumptions and results that In uncertainties statements materially company them. to differ disclaims and knowledge the Private make current obligation actual XXXX. our we future provisions or are statements today the and other involve financial Reform update regarding and about based expectations. risks These projections

For company's Bill? getting affect additional fiscal February information on with and please XX, asking for you advance the one XXXX, usual, report for the year queue for Form annual see as question, the ended in filed in could follow-ups. XX-K expectations these Thank on SEC. back important more factors that the

Bill Nash

with quarter investments I'd received, call what omni-channel which share Great. in always, to us. everyone, the earnings and reiterate questions. for the an will Thank that, has I it well the Tom you, with results, and the Katharine. then, and Good open been overall as fourth joining update consumer I'll release. over SG&A, Today, to then said After very discuss Starting turn I'll morning in like rollout, and I'll on start our thanks your I'll for fourth highlights. he finance, quarter

focus last in business midst our this associates. double-digit and continued even investments This is on associates. to store of to the strength prior bonus lower the our comps unit for discretionary Used to strong a with after diversified by by driven year's our we compared of in fourth We achieved were in efficiencies. grew operational growth, earnings the offset partially X% traffic. conversion, adjusting the a negative year testament and pretax paid ongoing model quarter. eligible They pleased are We by our business X.X%,

pleased were environment. acquisition While in higher affected they positive the to we quarter, tax relative believe were units robust a refunds to this Total by X.X%. and by we delays report year, February competitive last grew used comps continued prices,

a a report we year market know, calendar fourth and you share it track basis, the on quarter. data As once year in

comp share X.X% Our in XXXX. data our fell XX-year-old in vehicles current approximately in indicates that XXXX, our to markets to zero X.X% of from

the we this to and in years. largest gains. to four in when was share which an calendar comparison in almost disappointing, XXXX, share While the year reverse occurred of is year year's growth increase started This market saw our share the year in decrease comp in earlier in the in second-half was X% decrease

the Our by XX%. traffic grew in quarter website fourth

remains stable to year. unit at per $X,XXX retail Our $XXXX used gross profit compared last

two the we've are per profit past, in shared primary gross unit. impact As around that decisions there our factors

in that ensuring competitive is first are the marketplace. prices The our

margin focus profit per total we by sales. gross dollars Second, optimizing balancing and on vehicle unit

X.X% profit period. wholesale Other strong quarter, gross per fourth $XX to was year's test always, the grew the to by increasing compared XX% in pricing this by prior $XXX or will unit quarter, elasticity. compared contributor year to grew a almost $XXX million. confident last to quarter, we Wholesale We as units continue monitor are our gross profit and to competitiveness, but price in and

This to to improve selectively our finance adjustment our to we explains We model our bonus majority reduce As of the growth that the we to and remainder update, we used a portion fourth related in mix relates quarter. comp paid year's we associates Service from a drove channel. service cancellation these margins, of mentioned year, positive to $X sales were provider EPP The able to department as in of shift which remainder the revenues. as margin secured leverage prices overhead, earlier increase. and approximately annual last increased a funds our penetration. the from reserve result sales this and by benefited EPP million of a third-party discretionary decreases fees to benefited service cost the finance

store Before me and discuss sales I openings. over our mix the Tom, let turn to call

to decreased third XX% versus the quarter. and As our trucks XX% year. and zero sales, a for percentage SUVs old vehicles time XX% last quarter the of year, sales fourth of in Total XX% in accounted four year XX% our about from this up of to about last

five we three markets, which New During new opened stores, included Buffalo, the and fourth quarter, Orleans. stores Montgomery, Alabama, in television

existing in stores Orlando our and opened Oregon. Portland, markets of also television We

quarter three ‘XX, first plan to stores of the store the represents week one fiscal in market. earlier Memphis our open opened we which second During of and we this

new also Tom? McAllen. will stores Waco two in We open markets, Texas, which are and

Tom Reedy

year, the Good $XXX SG&A, opening of since represents XX% you, fourth stores X% the the quarter fourth Bill. everyone. increased morning, our expenses growth of On for last to million. of a Factors Thank store SG&A which expense XX on included quarter increasing quarter the beginning in the base.

technology XX.X related was in X,XXX, $XX and to initiatives, of expense. an investment $XX per unit million a SG&A platforms per decrease increase continued Our unit or digital compensation year-over-year. share-based and

you fourth paid to last benefits line, roughly quarter. this our $X efficiencies dollars we with advertising year, staffing We the of accounts lack was the offset show spend optimization. to bonus which I'll included and relative growth in for comp and are the to towards spend Also weighted end some that prior discretionary year that was timing the annual the of pleased last year. associates of of the advertising year it eligible that within of remind SG&A amount able as million leverage demonstrates in growth are

invest We three areas, continue digital legacy our primary systems, our our associates, and in initiatives. to

For wage variety associates, plan a healthcare enhancements. and this includes of adjustments

competitive our systems. the to and omni-channel to maintaining benefits success, talent. vital to must are is associates key compensation and vision upgrade program our our legacy best execute a operating we very to Our In continue retaining order attracting and

this While won't it to offer short-term return position. spending is competitive critical future our

We will digital in invest also to continue initiatives.

We are associates effective. help implementing that and our developing more and tools be efficient

enhancements improve addition, to customer we experience. continue online In to introduce the

shift to XXXX acquisition stores and expect Now planned XXX to future planned FY openings that's for XX we $XX XXXX and for a million centers. fiscal over some spending plus customer million FY experience XXXX moving CapEx, roughly originally includes three The fiscal for in XXXX. spend the above spend

we targeted Looking we number few in are in last out a to the are to years. fiscal position similar stores XXXX, as of a open

model need However, of clearly going type forward. and locations and business our we evolving will is number we to the continue both evaluate

support shareholder by plan invest in to our we Finally, returns to capital structure. continuing

During quarter, fourth the for we million. repurchased shares million $XXX X.X

full the buying we in shares million X XXX returned XX.X about million compared million back FY For to year, XXXX.

percentage growth between shows year. the income While EPS fiscal maybe obvious investment stating and difference growth on up net X.X for the points in the the roughly return this

repurchase authorization. We billion our current $X have over in stock remaining

moving capital Now to financing and results.

measured $X.X $XXX result partially to managed billion. decline applications very grew was in last Tier margin in is last year. XX.X% average portfolio sales the especially accounting compared of slight by this million. continued quarter XX.X% third-party penetration Capping receivables year-over-year the to year, penetration their Tier quarter. X This interest XX.X%, year's XX.X% was performance. fourth $X.X strong The year financed. fourth receivables X.X% quarter last well to be of net the portfolio of lending Their Total of growth compression unit growth represented for was amount in in both used to Our the third margin. while offset continued slightly to sales of offset and increase performance of with down sales compared average in net from last by X.X% and by quarter. three-day executed partners CAF CAF our average increased originated X managed X.X% the continues XX.X% solid. million small marginally interest income payoffs up, modest year's loans compared sales in

the line allowance both last quarter, and year's portfolio rate losses for of any was and the and $XX a to during year-ago quarter. in third charged with X.X% X.XX% X.X% in consistent at receivables customers For third million loans contract quarter. this A the weighted losses loan with average originated quarter the provision was X.X% versus the year's grew with loan managed for fourth

Bill. Now call the I back will over turn to

Bill Nash

Tom. Thank you,

consumer forming including been future. Spending took product digital it essential all leveraging construct FY the online new experience of then years. and to As these step a a represent development towards the of to launch building groundwork you investment. couple up the are we upgrading and successfully, organization, experience investments offering. past of for new technology a number and FY for the steps our To These in in vision know capabilities XXXX we've like will our XXXX for laying our

will So in the range FY to acquire X% to X% we XXXX. to for leverage similar comps believe we thinking our of SG&A

slow amount the of after in and that. growth FY the spending in expect to XXXX We taper

look continue which to reprioritize fourth quarter. opportunities ability and to ways to to leverage this We for will contributed our reduce spend

had Atlanta our Please and Now months increased new few quarter, beyond with pricing a in conjunction and and we more double-digit other let that expected we campaign of free a to we about With a me launch Web growth omni-channel, advertising the both only Atlanta talk a a the have This In of is gain. including evaluate. market rollout. little introduced was would that performance. of to one pleased we've sales very appraisal. increase bit are test. new our elements we site, achieved In said, what with and number omni-channel transfers, comp experience remember fourth

give context. this little practice represents high also of details home home I this finance little delivery initiative going forward. pleased a percentage while point. nor change although new We But MaxCare wanted stores penetration more to in to this market, I very are Atlanta normally is interest do overall sales lower. is in our in mind, don't similar with at given small delivery comparison specific it penetration Keep our the conversion plan give sales to the the In market a on I

operations will we efficient be we of omni-channel less experience. as near know We roll out our in the the that some in also term

are of up those simply some capability. are a new starting related by Some to and these inefficiencies design

in less we and unit continue as at this point. do to to our able sales markets We little our on Atlanta as believe improve be result, a other a consumer market will omni-channel compared As experience out that we with this are the roll profitable per mature.

We also experience more efficient unique be could our current this model. than believe

and experience excellence We the forward. Atlanta, are confident growth operational that We is in the results have far that ability we so of a levers more strong importantly, confident will that believe going Most optimize. even the comp direction. omni-channel are right market seeing one our after and the track of key be sales drive record to this share in helps we

me fiscal average open staff expect and Now, let XXX of next the associates me serve Centers let Experience CECs will Customer across talk the year three states. we will an This U.S., to each or multiple about steps. have

Our realized Atlanta in these will we offset a in be that which attrition. additional associates omni-channel able consultants stores normal will with sales experience be to in suggests through reduction

phase which second CECs early rollout, of next in in include open we'll the supports be will first Atlanta the omni our quarter Florida and stores. will as it So

expect second third CEC are second quarter, We currently later and working Kansas also the City in open the we in site. site on to the

customers the previously our February, bring As to we experience of plan XXXX. omni-channel by the we to said, majority

that every single skilled believe be to talked our investment deliver and essential inventory experience, built you national strengths an model the we experience. often leveraging and that's associates, transportation scale Strengths strengths we've new in will over about to capabilities, the that experience but our not omni the technology XX our we the this years buying. our knowledgeable continued are I've future customer. As that These merchandising delivering footprint and of unmatched and tailored last before, our An only car are CarMax infrastructure, to and is experience critical, industry-leading an brand. and capability, of to digital include

be questions. we'll Kim? to your happy Now, take

Operator

from from Your Sharon first William comes [Operator Blair. Instructions] Zackfia question

open. is line Your

Sharon Zackfia

Hi, good morning.

Bill Nash

Good morning, Sharon.

Sharon Zackfia

give that us a for keep line rules Atlanta. on just guess in was what before with the rolled could multifaceted all-in Atlanta. bit on you bit when talking around color you give more question Thanks similar you color I a profit trend gross little do your comp Katharine's in around on And to Could color little car understand some is to but the profitable per company less omni-channel? amount we car prior being about double Are like of profitability? omni-channel it's secondly, ultimately, car or think to that, per So, if helpful overall basis. the current Atlanta know hear the just a per similar a improvement a to terms about out. I so digits, on of Atlanta basis? saw to omni-channel just model can discussion was then the you you And don't

Bill Nash

Sharon, you're pushing really Katharine's…

Sharon Zackfia

she's retiring soon, so. Well,

Bill Nash

Let me comps. talk about the

the First very that all, comps, in group control a look group. we any with pleased a but into you And go give detail not the I'm have of little going lift the saw to I'll beyond that obviously color, at. that on control we're real we we

looking little pressures, margin. on less SG&A, like that feel the at addressed something more those, in model other. omni is I that's as have we the as as do those out so to dependant as we margin, a profitable, feel far script, the like profitability, -- are looking you different and that's of far least aren't this margin those whether talked one any at all-in, SG&A my on and offset opening pressures, when we at could different, I roll efficient. two As can type And decided Truthfully, or be

Sharon Zackfia

Yes, you. thank

Bill Nash

Sure.

Operator

from Your next Oppenheimer. from question Brian comes Nagel

line Your is open.

Brian Nagel

morning. good Hi,

Bill Nash

Brian. morning, Good

Brian Nagel

comp? extent that speaking Nice connecting you can try to under double-digit able new want a is to CarMax? potentially facets follow-up the in sales you the well. omni-channel quarter to to or improvement you and what, on that you And reflective with as I'll comp, most of that's as put to all if are Sharon's talk regard mine will, always. facets, that all questions, Atlanta were Atlanta, effort for what of isolate of to about customer what But in important to helping one the with drive I

Bill Nash

different example, we know the would what facets, we different so to we Yes, or implement, something do Brian, advertising of transfers, for when on free expect we kind see.

have each to of We what look saw at beyond a expectations would those up, And individually, add see. we we expect what would one you it of lift see. some when we normally

what that's you the the I it's think than second was of more sum at component. the So, something when parts look individual part? And any

Brian Nagel

drive is to it the it to regard in new that would With have a maybe customer, is customer sorry. I'm connected is not past CarMax helping it a just that comp, with?

Bill Nash

thing more hard this picking we Yes, instances would some we've maybe at delivery have just customers. physically is point that are home it's the some and experience the wouldn't to into experience that they delivery I for tell. And couldn't say probably But think have store. because on a it's we only customers I the seen much it up than gotten this better home

Brian Nagel

Got it. Thanks.

Bill Nash

Sure.

Operator

Kennison question from of next Craig line the from Baird. Your comes

Your line is open.

Craig Kennison

decline a stores. bit on do reverse Great. more a modest share to What Thank to and surprise taking caused in given XX% you year, early that had think struggle year. the you the of question. a what for it? had opened then changed Bill, you you you mentioned you my That's

Bill Nash

Well, hey, Craig.

organizations think And a the we've started whole quarter we starting that year, Just pricing and to remarks, then share about the year. those And latter a manage declines talk went in through been growth, And the different clarify. my in I bit. little a in actually to unusual but off said nationwide earlier little quarter, down towards differently. of the we first as environment market half. reversal comp the comp I markets -- bit, saw saw an this really I went up in

for sales, support our Some may up wouldn't and example, tests that. elasticity pricing for give margin

a that be cars a thing And overall. environment new to I just I Look, pressure. in. is good this been other is The think it's a are competitive bit of little business the under think

just more more I some in think so advertising. And overall think entrants, marketplace. There's I there's have some -- have we we general the noise new

both saw different as pull those especially factors, I different are early think on levers. contributing we So, competitors

Craig Kennison

Thank you.

Bill Nash

Sure.

Operator

Your Nelson from line comes the Stephens. next Rick from of question

open. is line Your

Rick Nelson

Thanks.

going associates about to you expense? Are how three you affecting Bill, XXX per see be CECs going that out talk like pull number roll out of the So, out CEC. able can you of or do stores associates to you're a that to

Bill Nash

Sure. least e-leads. currently, to staff for it We out we absolutely like shifts, We call follow-up calls at way e-office and number, a think pull no on a store we've expect take longer we to in what phone number. that. have Again, a Atlanta, what we like if so staff the far where people you shifts staff seen about

get each normal will to in levels through appropriate So, the we attrition. staffing store

expect have X,XXX the because over And I it, the all store if So in across offset efficient think more we country. be you part-time sales more model, this think the we're time have will sales we would to e-office associates. a them currently what asking staffing we about to with than be associates And CECs.

some it, them good. aren't are And some some don't, and some good like of so

think folks So, focus at all by time give leveraging will I this, they over are leverage. this very that is us even on, skilled more

Rick Nelson

Great, good thanks. luck. And

Bill Nash

Rick. Thanks,

Operator

Your from next Ciccarelli Capital Scot RBC from question Markets. comes

is open. line Your

Beth Reed

be sites quality these many Good in seem price know doesn't up have advertising to getting on you credit your help processes. for is and indicated kind marketplaces, morning. that I of the CarGurus. it Reed better you're getting could I guys wanted should like your improve ask about cases reconditioning message because Beth the perception, Scot. you for like your This online merchandizing on changing

any, give can big sites wondering, these you just having Thank two, you. improve sales? of your if is an any think on ranking" timeframe helpful. be to on one, your then, around how listing "Value would specific this you do and impact So initiatives, color And

Bill Nash

Sure, Beth.

being understand our cars. That we're that perception. of to good all, our always want sure value prices. we make we've a got of good price that customers feel First sure making said, the We the about

really site, you that and of we're we're more So alluded and four on Web focused already on, focus our transparency quality message there's the areas which one to. doing But we're working first, this. on

As Web in site matter latter out quality focusing quarter. retargeting of banners, TV, that. non-Web a new the so the of rolled part on and We're at transparency advertising, we also our site nationwide more a like things fact,

working to do. to, third-party we that sites algorithms. a The what third sites, quality you listing if quality they the with they which the condition Or Most we're standards our credit any their is and reconditioning into don't third-party thing, is of alluded Web type not consistent for factor on it's basis. get do, or

good don't feel great things, -- I major just think don't question, be your just progress. had factor, on about comps. to really making all overall think it's but I So, we're other I it may those And a impact it's a

Beth Reed

you thank much. very Okay,

Bill Nash

Thank you.

Operator

the of from from Your Basham Seth Securities. line next comes question Wedbush

Your line is open.

Seth Basham

Thanks a lot, good and morning.

Bill Nash

Seth. morning, Good

Seth Basham

update us in just your shown what secondly, in perception your there of Atlanta, Bill, out internal then from can learning cars you the on give an your price relative terms and price And test industry? what has of on to the you're research those? otherwise,

Bill Nash

quality. are am any recent you credit or at was car what of Okay, our the research, and without the the the of sorry, on -- second tell your just point for fair, question that cars question? on I like without most research would great a research the you our either this would groves, tell first for example majority part our your what any good, that's for

Seth Basham

pricing tests? The

Bill Nash

all but elasticity. just pricing and gross in profit so Look, the to we we about optimizing what time. making lowering yes, not of sales is pricing good as doesn't marketplace we test and the that our part while like more feel drive Oh We're also absolutely in balance that I marketplace short-term structural gross we're competitive seen prices, just where of total we periods pricing that dollars normal again our where competitive competitive tests changes total profit, be on in the normal looking can that our our seeing really as we do by were far sure that that's quarter. noted, price mean on are we quarter haven't for may tests

Seth Basham

you. Thank

Operator

comes question next from Your Sinkevicius from Morgan line Stanley. the Armintas of

line Your open. is

Armintas Sinkevicius

this spend for the any curious the forward. the how and question. much you you much the Thank spent phasing omni-channel year? about launches morning. initiative had then good was how marketing separately you going on I taking just Atlanta – through you plan on And of for Hey, comments of in the plan how to course

Bill Nash

high Okay so in Atlanta call market. is we Atlanta, marketing what awareness

you we what it proven on have every to spent far in as as Atlanta. a be conjunction in think little spending forward geo would market we like depends it is there. normal then to up If is to this market we were awareness of going been going what Which into spend different previously are additional be with step going will obviously a what paying the a is bit because about

out As second far being we start opened stores in the said, as the in with phases will of rollout with early CEC like rolling second stores first. that will additional we the conjunction Florida quarter get two I and

we'll update end that cadence the the stores stores quarter by next as of as the future quarter other we stores. you the well Beyond the of did already the

Armintas Sinkevicius

been amount or you et to planning various so market step does Web run and the basis at I sort what just work on the to up cetera? that that the marketing with you're rate clear essentially of through site and Okay, will spending spend you've maybe the kinks that of Atlanta, am as a all

Bill Nash

in year-over-year per you a want on do overall our bit we because spend omni-channel advertising think part to the look at expense more would think basis. a FY we XXXX unit there maybe how holistically support expect I No per-unit of an if advertising I a And about much should rollout. little increase as -- in you

a a would per forward. expect unit So on basis I going little

Armintas Sinkevicius

thank you. it, Got

Operator

of the next America. from from John Murphy line comes Bank Your of question

Your line is open.

John Murphy

Good morning, guys.

Bill Nash

Good morning.

John Murphy

sure had Just wanted to these make number touch to Bill. just on stat one straight

XX% below and portion you are, I mean sure as make the down improved mentioned we versus at quarter. year want in at if and zero sort of what in the has last I really XX% sales your was of right XX% quality look that to the have think spectrum think just vehicle consider dramatically decade. and four third the going down you the as that to percentages so a market I last is little really the deliver to quality further want vehicle because going age be the Could of bit you the what in to you still vehicle. time to nearly used just larger the be sort tip as much, over iceberg down for age customer the of really you you new And much of might spectrum? I

Bill Nash

do this right, as were versus John, for. model older And consumers percentages the business those a bit beauty quarter little customers sell that XX of the what we look you in can vehicle. interested saw are the XX. looking have And this we the

of look is we're at quarter in versus I year-over-year the that last lapping pricing. part of Keep if think this fourth you fourth quarter. mind because year's

more We $XXX. mixed have up its the adjusted acquisition largest price in than step

that that this quarter at bit we year, an had still incremental last one up a little on look of you we had bump the If year.

prices I consumers are still you're But if obviously to be standpoint so just looking So people sell and probably affordability moving them down. that's you're from for. secure think able what seeing right vehicles expenses we'll is what are

John Murphy

dollar have business the and grosses with much be that to you just that high-quality capital follow-up, the this is you same efficient prices of future to model? in able want have the beauty product mean more acquisition and still a Bill, might I know have lower that,

Bill Nash

older continue vehicles, right, have our overall we average go you're if absolutely selling down. we -- if would to price, would Well,

John Murphy

the and And stay right, grocers what… same, just which based on focus, your about

Bill Nash

Absolutely.

John Murphy

Okay. Thank Thank much. you. very you

Bill Nash

you. Thank

Operator

Your next Whiston question comes from from David the Morningstar. of line

open. Your is line

David Whiston

morning. Good Thanks.

Bill Nash

Good morning.

David Whiston

now that consumer helping down, is two all budget is Or conscious Just more question do coming for vehicle ago? and awfully you do positive sales think down more greatly confidence supply new about? versus marginally you just you a talking with were it you also right year is consumers

Bill Nash

think. new for I mean, if car overall year think I a flat new look I I pretty, at sales. it's been pretty No, car, the

to it very, on years still still in where of little been is tell, that it up proven I bit, can is we've confidence both a goes little think as as And goes success sides bit, able down where I that. far we've years strong. very consumer a have

David Whiston

Okay, you. thank

Operator

[Operator comes Bottiglieri Your Research. Chris with question Instructions] next Wolfe from

Your line is open.

Chris Bottiglieri

the taking question. for thanks Hi,

there basis amount to Given to basis. Atlanta's a extrapolate comp the any year? roll of you. surveys the the of thinking as through comparisons why I out the tier it the one-year trend on reasons is a other guess, rest your intentions it Then store the all investors that, by shouldn't is Atlanta's performance similar rest comp outperform given to this a Thank on to base stores

Bill Nash

lift you and to we're little so I we the good control see which in see market." can that, when one Yes, on Chris. I Atlanta bubble, is this experienced single business is what we lot markets market a we expected to again, extrapolate going we a have that because look I reason differently, every at differently don't is in we of think and increase, what say different and the this feel performs market say, feel really is to double-digit you a just market the perform compared also we core is this the about to market markets And versus like is only why it's remember one other "Hey, going group. comp each

there's earlier it's is playing we omni, lot So not different -- that. said of as due into I, all a to elements and

Chris Bottiglieri

Got you.

just I'll then back and Thanks. want in. real, just -- hop recap And you're I'll back quickly, able to hop Okay. well, to if

Operator

Suisse. line Sigman Seth a from Credit comes question from next of Your

Your line is open.

Seth Sigman

Hey, to Thanks. on I the follow wanted guys. expense up growth.

so that sort if reconcile you So just to there you that help short-term, are understand the how similar less some the be also X% may can Thanks. to you and limit X% two impact negative being comps that? the investments, XXXX, right? you those guess need the us SG&A, to I discussed efficient in from do leverage I levers said of

Bill Nash

mid-single guys put Yes, are saying saying was a we continue we re-privatization the somewhat We we what really offset I were depends much through that think put of the high also a savings. we on and clarify bit it we range you there on know on little digit. because how get then on little how to think the done just can range five-day to help much I and because and

Seth Sigman

can Okay, the do Hold out we give the of the may with you I'll Well growth year hop same the extent sense throughout year. a timeline point back in. to just of if the of is expense second the how about us the rolling quarter think could on be mean CC the you investments I the in throughout maybe on. particularly cadence

Bill Nash

it's I'm -- some going have it's going the said, the any and picking year, just not I I some They're some it's give to quarter; see, throughout distributed on you Yes, there. expense. going well, to how second be you're to be there to guidance be as We going in is up additional wait to know. think

So I to think next you be quarter about there the, because on to from timing year the it could a got one whole little to think the quarter.

Seth Sigman

Okay, thanks.

Bill Nash

Okay.

Operator

Your Chris comes from a Wolfe Research. Bottiglieri next line question from of

open. is line Your

Chris Bottiglieri

thanks the Hi, question. for taking

you'll convert model to the over may in through it in else it what or the you helpful? today. probably quick three markets just steps question, be what omni-channel like Maybe of steps, -- take would can plan actually are is the can I February. it's it kind it what technology get through you. just us Thank it us the store like you to to legacy to XXX omni-channel are market, takes what an XXX to walk markets My you the whatever convert guess to -- convert walk year training to market, So takes you're takes think your and

Bill Nash

Okay.

two omni, Chris, setting second accomplished. question. that the for big been the getting to thanks things on all, of groundwork. for have Listen, back we've in mean, line be I there's First the

a in opening of whole addition said I omni-channel of that a in that's kind open, my get customer part experience thing, that, centers experience. because As to remarks from obviously, critical our have standpoint, but the technology we to

having to February feel have that is to continue feel good work So this to strong one offer our to of learned about the which year by ability to very that's things we majority out the there, customers. the we about we get we've our what next plan, of through,

and earlier, for is is as the this, differentiators got key Tom associates, thing talked that other we've are there The they about XX,XXX us.

in for them They're rolled and they figure going make how obviously forward. as sure going impact to ability, management we big to them will that give in go be them. there's them out, have it. And to it's change. the excited out what what rolled today we does have first out, when change a we we change and as it is that is and give But as for of and helping this that ability lot it been what to and improve mean understand, about helpful we continue super had, this adjust they a than for the we've to have Atlanta, us So better

be an every the are big groundwork experience that is to just This a lot and can that's we've is iterative everybody omni-channel those So of laying clear. the This experience. customer one segment is and things in versus process. experience have. able an addition unbelievable out been requires already there, for we give an of that we serve a be meant -- should single And it's another customer lot it's to things segment, them that every not that

can't to physical our we we a how store, the I as lot that presence, example, a we importance for we're presence, a increase and go and is of that that because have already we so physical things forward, that have. we presence So important leveraging of have that overstate continue physical

Operator

Guggenheim. Faghri Your from next question comes from Ali

open. is line Your

Ali Faghri

the for morning. just on you called based on taking headwind experience. Good question, quarter my out historical Thanks. in refunds, it Thanks your a tax fourth as the

those get of to volumes normalize? quarter levels in loss some refund the as expect those back first You

Bill Nash

Yes.

of didn't about the about they benefits, is until I estimate, way quarter. our So will, delayed a generally same think I there think the and really it's week see that at a timing part refund will coming think whether because by I And out that back look as the about the itself February, a was I about way seven tax best work probably last were we just and out.

Operator

further questions now I'll at this turn call to Bill no There the time. are Nash. back

Bill Nash

talked than I've Thank your are your got thank you also more today. in Great. talked appreciate differentiator our this, associates. to has interest for I joining CarMax. the they true XX,XXX for support CarMax. all you. call about I about Tom thank really and it, Listen, the

this ones day, are you. all bringing to we for every that Thank at are you single what to want associates I and the new the experience quarter. customer do life. thank again you Our talk will of end next

Operator

This call. concludes conference today's

now You disconnect. may

CarMax (KMX) 29 Mar 192019 Q4 Earnings call transcript