Release Date: April 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the difference in market share performance between the first and second halves of fiscal '25, and how might rising used car prices affect your business? A: In the first half, we faced a significant price correction, which masked our improvements. The second half saw better execution and efficiency gains. Rising used car prices could widen the gap between new and late-model used cars, potentially increasing demand for used vehicles. We've learned to better manage inventory and financing options, which positions us well for future challenges. - William Nash, CEO
Q: What are the current trends in used car sales, and how might new car tariffs impact your market share and industry growth? A: December and January were strong, February was softer due to leap day and tax refund delays, but March saw a step-up in sales. New car tariffs could increase new car prices, pushing consumers towards used cars, especially late-model ones, which could benefit us. However, tariffs could also raise parts costs, impacting reconditioning expenses. - William Nash, CEO
Q: How does the investment in reconditioning centers and auctions affect your ability to handle older vehicles, and what are the expected cost savings? A: The new centers increase capacity and allow us to maintain quality standards for older vehicles. We aim to achieve $250 in cost savings per unit, though tariffs could impact parts costs. The centers also reduce logistics costs by being closer to stores, providing ongoing savings. - William Nash, CEO
Q: How sustainable is the early fiscal Q1 performance given the fluid macro environment? A: We don't see it as a catch-up from February. We expect the momentum from the last three quarters to continue, though macro factors remain fluid. We're monitoring the situation closely and have mitigation plans in place. - William Nash, CEO
Q: What steps are you taking to increase market share from the current 4% towards the 5% target? A: We're focused on growing sales and EPS, which will naturally increase market share. We're gaining share from other dealers and see continued growth in the 0-10 year-old vehicle segment. Our strategies are in place to maintain this momentum. - William Nash, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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