CarMax Inc. (NYSE:KMX) Q2 2021 Earnings Conference Call - Final Transcript

Sep 24, 2020 • 09:00 am ET


CarMax Inc. (NYSE:KMX) Q2 2021 Earnings Conference Call - Final Transcript


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Bill Nash

can manage certain aspects of their car buying journey. They can bookmark and see vehicles they selected online, they can submit a financing pre-approval and compare their financing options, they can also get an estimate or an actual offer for their trade in. And finally, they can complete the checkout process in the hub for the car they selected online or in-store and choose that they want a home delivery or curbside pickup.

Our omni-channel experience has been well received. Approximately 70% of our customers interacted with our CECs this quarter. Additionally, approximately 50% of our customers progress there sale remotely, up from about 42% pre-COVID. Most of these customers still chose to come to the store to complete their transaction. And approximately 30% of our customers still opted for an in-store experience only. Again, the advantage of our business model is that customers have the choice as to how they progress their experience. This is what gives us the largest addressable market.

We are focused on driving customer engagement strategies to ensure we continue to remain top of mind and the first choice for car buyers and sellers. We launched national marketing campaign last year, which has reinforced the strength of our brand and established a solid platform for future campaigns. We've now introduced our omni-channel nationwide. Accordingly, as we go forward our messaging will focus on clearly differentiating our brand from digital only and traditional dealer brands by demonstrating the benefits of our omni channel offering.

Additionally, we will be increasing our year-over-year marketing spend in the back half of the year to expand our teams and investments in areas such as SEO, SEM, messaging, content and social. Our goal is to drive high ROI customers to our digital properties while empowering us to create multichannel personalized campaigns. We have a unique retail customer experience that we are continuing to evolve to exceed our customers expectations. At the same time we are identifying and investing in new initiatives that we believe will also be solid contributors to our earnings growth.

All of this leads to a very exciting future, but none of this would be possible without our great associates. I want to recognize all of them and the high performance culture they maintain here at CarMax, a culture the values all individuals and perspectives. Over the past several years, we have taken on the largest transformation in our company history evolving nearly every aspect of our business. We also accomplished all these great results in one of the most challenging environments we've ever faced. And through it all, our associates have continued to live our values, every day by putting people first and taking care of each other. I'm very proud of what we've accomplished and I'm excited about the opportunities ahead.

At this time, we'll be happy to take your questions.