車美仕 (KMX) 2023 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Third Quarter Fiscal Year 2023 CarMax Earnings Release Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, David Lowenstein, AVP, Investor Relations. Please go ahead.

女士們，先生們，謝謝你們的支持。歡迎來到 2023 財年第三季度 CarMax 收益發布電話會議。 （操作員說明）請注意，今天的會議正在錄製中。我現在想把會議交給今天的演講者，投資者關係部高級副總裁戴維·洛文斯坦 (David Lowenstein)。請繼續。

Thank you, Ashley. Good morning, everyone. Thank you for joining our fiscal 2023 third quarter earnings conference call. I'm here today with Bill Nash, our President and CEO; and Enrique Mayor-Mora, our Executive Vice President and CFO; and Jon Daniels, our Senior Vice President, CarMax Auto Finance Operations.

謝謝你，艾希禮。大家，早安。感謝您參加我們的 2023 財年第三季度財報電話會議。今天我和我們的總裁兼首席執行官 Bill Nash 一起來到這裡；和我們的執行副總裁兼首席財務官 Enrique Mayor-Mora；和我們的 CarMax 汽車金融業務高級副總裁 Jon Daniels。

Let me remind you our statements today that are not statements of historical fact, including statements regarding the company's future business plans, prospects and financial performance are forward-looking statements we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our current knowledge, expectations and assumptions and are subject to substantial risks and uncertainties that could cause actual results to differ materially from our expectations.

讓我提醒您，我們今天的陳述並非歷史事實陳述，包括有關公司未來業務計劃、前景和財務業績的陳述是我們根據 1995 年《私人證券訴訟改革法案》的安全港條款做出的前瞻性陳述. 這些陳述基於我們目前的知識、預期和假設，並受到重大風險和不確定性的影響，這些風險和不確定性可能導致實際結果與我們的預期存在重大差異。

In providing projections and other forward-looking statements, we disclaim any intent or obligation to update them. For additional information on important factors that could affect these expectations, please see our Form 8-K filed with the SEC this morning and our annual report on Form 10-K for the fiscal year ended February 28, 2022, previously filed with the SEC. Should you have any follow-up questions after the call, please feel free to contact our Investor Relations department at (804) 747-0422 extension 7865.

在提供預測和其他前瞻性陳述時，我們不承擔更新它們的任何意圖或義務。有關可能影響這些預期的重要因素的更多信息，請參閱我們今天上午向美國證券交易委員會提交的 8-K 表格以及我們之前向美國證券交易委員會提交的截至 2022 年 2 月 28 日財政年度的 10-K 表格年度報告。如果您在通話後有任何後續問題，請隨時致電 (804) 747-0422 分機號 7865 聯繫我們的投資者關係部。

Lastly, let me thank you in advance for asking only one question and getting back in the queue for more follow-ups. Bill?

最後，讓我提前感謝您只提出一個問題並重新加入隊列以進行更多跟進。賬單？

Thank you, David. Good morning, everyone, and thanks for joining us. Our third quarter results reflect the continuation of widespread pressures across the used car industry. Vehicle affordability remained challenging due to macro factors stemming from broad inflation, climbing interest rates and continued low consumer confidence. In addition, persistent and steep depreciation impacted wholesale values throughout the quarter.

謝謝你，大衛。大家早上好，感謝您加入我們。我們第三季度的業績反映了整個二手車行業普遍存在的壓力持續存在。由於廣泛的通貨膨脹、利率攀升和消費者信心持續低迷等宏觀因素，汽車的可負擔性仍然具有挑戰性。此外，持續和急劇的貶值影響了整個季度的批發價值。

In response, we have been taking deliberate steps to support our business for both the short term and for the long run. We are leveraging our strongest assets, our associates, our experience and our culture to manage through this cycle. Actions that we took during the quarter include further reducing SG&A, selling a higher mix of older, lower-priced vehicles, slowing (inaudible) in light of the steep market depreciation, maintaining used saleable inventory units while driving down total inventory dollars more than 25% year-over-year raising CAFs consumer rates to help offset rising cost of funds, pausing share buyback to give us capital flexibility and slowing our planned store growth for next fiscal year to 5 locations while maintaining our ability to open more locations if market conditions change.

作為回應，我們一直在採取慎重的措施來支持我們的短期和長期業務。我們正在利用我們最強大的資產、我們的員工、我們的經驗和我們的文化來管理這個週期。我們在本季度採取的行動包括進一步減少 SG&A，銷售更多的舊款、低價車輛，鑑於市場急劇貶值而放緩（聽不清），維持二手可售庫存單位，同時將總庫存美元降低超過 25 美元% 同比提高 CAF 消費率以幫助抵消不斷上升的資金成本，暫停股票回購以賦予我們資本靈活性，並將我們下一財年計劃的商店增長放緩至 5 個地點，同時保持我們在市場條件下開設更多地點的能力改變。

In the near term, we are prioritizing initiatives that unlock operational efficiencies and create better experiences for our associates and our customers. While we continue to selectively invest in initiatives that have the potential to activate new capabilities, we have slowed the pace of those investments. We believe these steps will enable us to come out of this cycle leaner and more effective while positioning us for future growth. We will provide more details on these actions later during today's call.

在短期內，我們將優先考慮能夠提高運營效率並為我們的員工和客戶創造更好體驗的計劃。雖然我們繼續有選擇地投資於有可能激活新功能的計劃，但我們已經放慢了這些投資的步伐。我們相信，這些步驟將使我們能夠更精簡、更有效地走出這個週期，同時為未來的增長做好準備。我們將在今天的電話會議中提供有關這些行動的更多詳細信息。

And now on to our results. For the third quarter of FY '23, our diversified business model delivered total sales of $6.5 billion, down 24% compared with last year's third quarter, driven by lower retail and wholesale volume. In our retail business, total unit sales in the third quarter declined 20.8% and used unit comps were down 22.4% versus the third quarter last year when we achieved a 15.8% used unit comp.

現在來看看我們的結果。在 23 財年第三季度，由於零售和批發量下降，我們多元化的業務模式實現了 65 億美元的總銷售額，比去年第三季度下降了 24%。在我們的零售業務中，第三季度的總單位銷售額下降了 20.8%，二手單位銷售額與去年第三季度相比下降了 22.4%，當時我們的二手單位銷售額為 15.8%。

In addition to the macro factors that I mentioned previously, we believe our performance was impacted by transitory competitive responses to the current environment. External title data indicates that we gained market share on a year-to-date basis through October, though we've seen some recent loss of share. As we have said before, we are focused on profitable market share gains that can be sustained for the long term. Through expansive price elasticity testing, we determined that holding margins during the quarter was the right profitability play.

除了我之前提到的宏觀因素外，我們認為我們的業績受到對當前環境的短暫競爭反應的影響。外部產權數據表明，截至 10 月，我們從年初至今的市場份額有所增加，儘管我們最近看到了一些份額的損失。正如我們之前所說，我們專注於可以長期維持的有利可圖的市場份額增長。通過廣泛的價格彈性測試，我們確定本季度持有利潤率是正確的盈利方式。

Third quarter retail gross profit per used unit was $2,237 which is consistent with last year's third quarter. Wholesale unit sales were down 36.7% versus the third quarter last year, driven by rapidly changing market conditions, which included about $2,000 of depreciation. This is incremental to approximately $2,500 of depreciation experienced during the second quarter. Wholesale performance was also impacted as we continue to reallocate some older vehicles from wholesale to retail to meet consumer demand for lower-priced vehicles. Wholesale gross profit per unit was $966 down from a third quarter record of $1,131 a year ago.

第三季度每件二手產品的零售毛利為 2,237 美元，與去年第三季度持平。批發單位銷售額與去年第三季度相比下降了 36.7%，原因是市場條件瞬息萬變，其中包括約 2,000 美元的折舊。這是第二季度經歷的約 2,500 美元折舊的增量。批發業績也受到影響，因為我們繼續將一些舊車從批發業務重新分配到零售業務，以滿足消費者對低價汽車的需求。每單位批發毛利潤為 966 美元，低於一年前創下的第三季度紀錄 1,131 美元。

Recall, last year, prices appreciated approximately $2,500 during the quarter, which was a margin tailwind. Just as we are doing in retail, we will continue to focus on maximizing total wholesale margin profitability. We bought approximately 238,000 vehicles from consumers and dealers during the third quarter, down 40% versus last year's period. Our volume was impacted by steep depreciation and our deliberate decision to slow buys in reaction to the depreciation. We purchased approximately 224,000 cars from consumers in the quarter with about half of those buys coming through our online instant appraisal experience. We also sourced about 14,000 vehicles through Max offer, our digital appraisal product for dealers, up 16% from last year's third quarter.

回想一下，去年本季度價格上漲了約 2,500 美元，這是一個利潤率的順風。正如我們在零售業所做的那樣，我們將繼續專注於最大化總批發利潤率。第三季度，我們從消費者和經銷商處購買了大約 238,000 輛汽車，與去年同期相比下降了 40%。我們的交易量受到急劇貶值的影響，並且我們有意決定放慢購買以應對貶值。本季度我們從消費者那裡購買了大約 224,000 輛汽車，其中約一半是通過我們的在線即時評估體驗購買的。我們還通過我們面向經銷商的數字評估產品 Max offer 採購了約 14,000 輛汽車，比去年第三季度增長了 16%。

Our self-sufficiency remained above 70% during the quarter. In regard to our third quarter online metrics, approximately 12% of retail unit sales were online, up from 9% in the prior year's quarter. Approximately 52% of retail unit sales were omni sales this quarter down from 57% in the prior year's quarter. Our wholesale auctions remain virtual, so 100% of wholesale sales, which represent 18% of total revenue are considered online transactions. Total revenue resulting from online transactions was approximately 28%, down from 30% during last year's third quarter. CarMax Auto Finance or CAF delivered income of $152 million, down from $166 million during the same period last year. Jon will provide more detail on consumer financing, the loan loss provision and cash contribution in a few moments.

本季度我們的自給率保持在 70% 以上。關於我們第三季度的在線指標，大約 12% 的零售單位銷售額是在線的，高於去年同期的 9%。本季度大約 52% 的零售單位銷售額是全方位銷售額，低於去年同期的 57%。我們的批發拍賣仍然是虛擬的，因此 100% 的批發銷售額（佔總收入的 18%）被視為在線交易。在線交易產生的總收入約為 28%，低於去年第三季度的 30%。 CarMax Auto Finance 或 CAF 的收入為 1.52 億美元，低於去年同期的 1.66 億美元。稍後，喬恩將提供有關消費者融資、貸款損失準備金和現金捐助的更多詳細信息。

At this point, I'd like to turn the call over to Enrique, who will provide more information on our third quarter financial performance and the steps we've taken to further align our business to the current sales environment. Enrique?

在這一點上，我想把電話轉給恩里克，他將提供更多關於我們第三季度財務業績的信息，以及我們為進一步使我們的業務與當前的銷售環境保持一致而採取的步驟。恩里克？

Thanks, Bill. Good morning, everyone. Third quarter net earnings per diluted share was $0.24, down from $1.63 a year ago. Total gross profit was $577 million, down 31% from last year's third quarter. Used retail margin of $403 million and wholesale vehicle margin of $115 million declined 21% and 46%, respectively. The year-over-year decreases were driven by lower volume across used and wholesale and lower wholesale margin per unit. .

謝謝，比爾。大家，早安。第三季度每股攤薄淨收益為 0.24 美元，低於一年前的 1.63 美元。毛利潤總額為 5.77 億美元，比去年第三季度下降 31%。二手車零售利潤率為 4.03 億美元，批發汽車利潤率為 1.15 億美元，分別下降 21% 和 46%。同比下降的原因是二手和批發量下降以及單位批發利潤率下降。 .

As Bill noted, we continue to face depreciation and have been adjusting accordingly to better position ourselves to manage through the current environment. Other gross profit was $59 million, down 49% from last year's third quarter. This decrease was driven primarily by the effect of lower retail unit sales on service and EPP. Service results declined $37 million as lower sales and secondarily, our decision to maintain technician staffing levels drove some deleveraging. Technicians are among the most in-demand associates in the industry and the retention will position us strongly to quickly grow inventory when we exit the current cycle.

正如比爾指出的那樣，我們繼續面臨折舊，並一直在進行相應調整，以更好地定位自己以應對當前環境。其他毛利潤為 5900 萬美元，比去年第三季度下降 49%。這一下降主要是由於零售單位銷售額下降對服務和 EPP 的影響。由於銷售額下降，服務結果下降了 3700 萬美元，其次，我們維持技術人員配置水平的決定推動了一些去槓桿化。技術人員是行業中需求量最大的員工之一，留任將使我們在退出當前週期時能夠快速增加庫存。

EPP fell by 14% or $15 million, reflecting the decline in sales that was partially offset by stronger margins and a favorable year-over-year return reserve adjustment. Penetration was stable at approximately 60%. Third-party finance fees were relatively flat over last year's third quarter with lower volume and fee generating Tier 2, offset by lower Tier 3 volume for which we pay a fee.

EPP 下降了 14% 或 1500 萬美元，反映出銷售額的下降被較高的利潤率和有利的同比退貨準備金調整部分抵消。滲透率穩定在大約 60%。第三方融資費用與去年第三季度相比相對持平，二級交易量和費用產生量減少，被我們支付費用的三級交易量減少所抵消。

On the SG&A front, expenses for the third quarter were $592 million, up 3% from the prior year's quarter, reflecting a slowdown from the year-over-year increases of 19% during the first quarter and 16% during the second quarter of this year. In the prior year's third quarter, we received a $23 million settlement from a class action lawsuit. Adjusting for that settlement, SG&A actually would have declined 1% year-over-year this quarter. SG&A as a percent of gross profit was materially pressured as compared to the third quarter last year due primarily to the 31% decrease in total gross margin dollars compared to last year's quarter.

在 SG&A 方面，第三季度的支出為 5.92 億美元，比去年同期增長 3%，反映出比第一季度 19% 和第二季度 16% 的同比增幅有所放緩年。在去年第三季度，我們收到了集體訴訟的 2300 萬美元和解金。對該結算進行調整後，本季度 SG&A 實際上同比下降 1%。與去年第三季度相比，SG&A 佔毛利潤的百分比受到重大壓力，這主要是由於總毛利率與去年同期相比下降了 31%。

The change in SG&A dollars over the last year was mainly due to the following factors: first, a $41 million increase in other overhead primarily driven by cycling over last year's legal settlement. We also continue to invest, although at a reduced pace in our technology platforms and strategic and growth initiatives. Second, an $18 million reduction in compensation and benefits, including a $16 million decrease in share-based compensation; and third, a $17 million reduction in advertising.

去年 SG&A 美元的變化主要歸因於以下因素：首先，其他間接費用增加了 4100 萬美元，這主要是由於去年的法律和解循環。我們也繼續投資，儘管在我們的技術平台和戰略和增長計劃方面的投資步伐有所放緩。其次，薪酬和福利減少 1800 萬美元，包括基於股份的薪酬減少 1600 萬美元；第三，減少 1700 萬美元的廣告費用。

During the quarter, we continued to take steps to better align our expenses to our sales. This included further reducing staffing through attrition in our stores and CECs, limiting hiring and contractor utilization in our corporate offices and continuing to align our marketing spend to sales. While our advertising expense was lower year-over-year, our investment on a per unit basis remains consistent with last year's third quarter. We remain focused on reducing expenses and anticipate continued progress in the fourth quarter.

在本季度，我們繼續採取措施使我們的開支與銷售額更好地保持一致。這包括通過裁減我們的商店和 CEC 進一步減少人員配置，限制我們公司辦公室的招聘和承包商使用，以及繼續使我們的營銷支出與銷售保持一致。雖然我們的廣告費用同比下降，但我們的單位投資與去年第三季度保持一致。我們仍然專注於減少開支，並預計第四季度將繼續取得進展。

Regarding capital structure. Our first priority is to fund the business. Given third quarter performance and continued market uncertainties, we are taking a conservative approach to our capital structure. While our adjusted debt-to-capital ratio was below our 35% to 45% targeted range, we are managing our net leverage to maintain the flexibility that allows us to efficiently access the capital markets for both CAF and CarMax as a whole.

關於資本結構。我們的首要任務是為企業提供資金。鑑於第三季度的業績和持續的市場不確定性，我們對我們的資本結構採取了保守的態度。雖然我們調整後的債務資本比率低於我們 35% 至 45% 的目標範圍，但我們正在管理我們的淨槓桿以保持靈活性，使我們能夠有效地進入 CAF 和 CarMax 作為一個整體的資本市場。

In keeping with this goal of maintaining flexibility, we took the following steps this quarter in addition to the SG&A actions I spoke to. First, we paused our share buybacks. Our $2.45 billion authorization remains in place as does our commitment to return capital back to shareholders over time. Second, we slowed the velocity of our CapEx spend. We expect CapEx will end the fiscal year at approximately $450 million versus our previous $500 million estimate.

為了實現保持靈活性的目標，除了我談到的 SG&A 行動之外，我們本季度還採取了以下步驟。首先，我們暫停了股票回購。我們的 24.5 億美元授權仍然有效，我們承諾隨著時間的推移將資本返還給股東。其次，我們放慢了資本支出的速度。我們預計資本支出將在本財年結束時達到約 4.5 億美元，而我們之前的估計為 5 億美元。

As Bill mentioned, we have also conservatively planned store growth for 5 new locations in fiscal year 2024. Our liquidity remains very strong. We ended the quarter with over $680 million in cash on the balance sheet and no draw on our $2 billion revolver.

正如 Bill 提到的，我們還保守地計劃在 2024 財年增加 5 個新地點。我們的流動性仍然非常強勁。本季度結束時，我們的資產負債表上有超過 6.8 億美元的現金，並且沒有動用我們 20 億美元的左輪手槍。

Now I'd like to turn the call over to Jon.

現在我想把電話轉給喬恩。

Thanks, Enrique, and good morning, everyone. In the third quarter, the strength and stability of our credit platform provided approvals to over 95% of the consumers who applied for credit during their shopping journey. CarMax Auto Finance originated $2.1 billion within the quarter, resulting in a penetration of 44.4% net of 3-day payoffs, up from 42.2% realized in the same quarter last year and 41.2% in Q2. The weighted average contract rate charged to new customers was 9.8%, which was higher than the 8.3% in last year's third quarter and the 9.4% seen in Q2. We continue to leverage our scalable testing environments and nimble underwriting infrastructure to strategically pass along a portion of the increased funding costs to consumers while still increasing share of the finance contracts.

謝謝，恩里克，大家早上好。在第三季度，我們信貸平台的實力和穩定性為超過 95% 的在購物過程中申請信貸的消費者提供了批准。 CarMax Auto Finance 在本季度發起了 21 億美元，導致扣除 3 天收益後的滲透率為 44.4%，高於去年同期的 42.2% 和第二季度的 41.2%。向新客戶收取的加權平均合同利率為 9.8%，高於去年第三季度的 8.3% 和第二季度的 9.4%。我們繼續利用我們可擴展的測試環境和靈活的承保基礎設施，戰略性地將部分增加的融資成本轉嫁給消費者，同時仍然增加金融合同的份額。

Tier 2 penetration in the quarter was 20.5%, in line with historical levels, but down from last year's 22.2%. Tier 3 financed 6.1% of used unit sales compared to 6.5% a year ago. Our lenders continue to make their own independent lending decisions in this challenging environment, and we remain pleased with the competitive offers they are collectively able to provide to our customers. Cash income for the quarter was $152 million, a decrease of 8.3% or $14 million from the same period last year. Our loan loss provision was $86 million resulting in an ending reserve balance of $491 million. This is compared to a provision of $76 million in last year's Q3. The current quarter's reserve of $491 million is 2.95% of managed receivables, up slightly from 2.92% at the end of this year's second quarter. This sequential 3 basis point adjustment in the reserved receivables ratio comes primarily from the continued addition of Tier 2 and Tier 3 receivables into the overall portfolio as seen in previous quarters.

本季度二級滲透率為 20.5%，與歷史水平一致，但低於去年的 22.2%。與一年前的 6.5% 相比，第 3 層級融資佔二手車銷量的 6.1%。在這個充滿挑戰的環境中，我們的貸方繼續做出自己獨立的貸款決定，我們對他們共同能夠為我們的客戶提供的有競爭力的報價感到高興。本季度現金收入為 1.52 億美元，比去年同期下降 8.3% 或 1400 萬美元。我們的貸款損失準備金為 8600 萬美元，期末準備金餘額為 4.91 億美元。相比之下，去年第三季度的準備金為 7600 萬美元。本季度 4.91 億美元的準備金佔管理應收賬款的 2.95%，略高於今年第二季度末的 2.92%。保留應收賬款比率的連續 3 個基點調整主要來自前幾個季度在整體投資組合中繼續增加二級和三級應收賬款。

All in all, we were pleased with the credit performance within our portfolio during the quarter, and we believe we are appropriately reserved for future losses. Further, we continue to be in a strong position to leverage our unique credit platform to operate our Tier 1 business within our targeted loss range of 2% to 2.5%.

總而言之，我們對本季度投資組合的信貸表現感到滿意，我們相信我們已為未來的損失做好適當準備。此外，我們繼續處於有利地位，可以利用我們獨特的信貸平台在我們 2% 至 2.5% 的目標損失範圍內運營我們的一級業務。

Within the quarter, total interest margin dollars were flat to last year at $277 million, modestly supported by a $5 million benefit from our hedging strategy. The corresponding margin to receivables rate, 6.7% was down 54 basis points year-over-year as receivables with historically low funding costs were offset by the receivables impacted by the more recent Fed moves.

在本季度內，總息差美元與去年持平，為 2.77 億美元，這得到了我們對沖策略帶來的 500 萬美元收益的適度支持。應收賬款利率的相應利潤率為 6.7%，同比下降 54 個基點，因為融資成本處於歷史低位的應收賬款被近期美聯儲舉措影響的應收賬款所抵消。

Regarding advancements in our broader credit technology. During the third quarter, we successfully completed the nationwide rollout of finance-based shopping, our multi-lender prequalification product, and we continue to see a high level of engagement with this experience. As a reminder, this gives customers the ability to digitally receive quick credit decisions across our entire inventory via our simple online application with no impact to credit scores. This also allows consumers to quickly and easily secure financing at any point in their shopping journey.

關於我們更廣泛的信貸技術的進步。在第三季度，我們成功地完成了基於金融的購物、我們的多貸方資格預審產品在全國范圍內的推出，我們繼續看到人們對這種體驗的高度參與。提醒一下，這使客戶能夠通過我們簡單的在線應用程序以數字方式快速接收我們整個庫存的信用決策，而不會影響信用評分。這也使消費者能夠在購物過程中的任何時候快速輕鬆地獲得融資。

Like the rest of the business, CAF is also focused on driving efficiencies. We are already seeing benefits from the modern, more nimble receivable servicing system that we launched a year ago. Consumer finance is a highly regulated and ever-changing space, and our new system allows us to adapt more easily to these necessary changes. A recent example is California's upcoming regulatory change that requires added disclosure and refund requirements related to the cancellation of the GAP waiver product. With our old system, the implementation would have been lengthy and onerous, and we likely would have temporarily suspended the product in the state while we made the changes. However, with our new, more agile technology, we are able to incorporate these requirements without interrupting. This is just one example of our early wins resulting from our new system, and we have a clear line of sight to many more in the near and midterm.

與其他業務一樣，CAF 也專注於提高效率。我們已經看到我們一年前推出的現代、更靈活的應收賬款服務系統帶來的好處。消費金融是一個受到高度監管且不斷變化的領域，而我們的新系統使我們能夠更輕鬆地適應這些必要的變化。最近的一個例子是加州即將出台的監管變化，要求增加與取消 GAP 豁免產品相關的披露和退款要求。使用我們的舊系統，實施將是漫長而繁重的，並且我們可能會在進行更改時暫時暫停該狀態的產品。然而，借助我們新的、更敏捷的技術，我們能夠在不中斷的情況下整合這些需求。這只是我們的新系統帶來的早期勝利的一個例子，我們對近期和中期的更多成果有著清晰的認識。

Now I'll turn the call back over to Bill.

現在我將把電話轉回給比爾。

Thank you, Jon, and thank you, Enrique. As I mentioned at the start of today's we're taking steps to support our business by prioritizing projects that unlock operating efficiencies and create better experiences for our associates and customers. It starts with making our omnichannel experience faster, simpler and more seamless. Some examples include we are enhancing online features to help customers feel more confident in completing key transaction steps on their own and make it easier to go back and forth between assisted health and self-progression.

謝謝你，喬恩，謝謝你，恩里克。正如我在今天開始時提到的那樣，我們正在採取措施支持我們的業務，優先考慮能夠提高運營效率並為我們的員工和客戶創造更好體驗的項目。首先是讓我們的全渠道體驗更快、更簡單、更無縫。一些示例包括我們正在增強在線功能，以幫助客戶更有信心自行完成關鍵交易步驟，並使其更容易在輔助健康和自我進步之間來回切換。

We're also making it simple for consumers to opt in to express pickup through self-progression. This delivery option offers customers the ability to complete their transaction at one of our stores in as little as 30 minutes and represents a win-win opportunity. Our research shows that customers love this experience when utilized, and it will enable us to lower our costs over time. Our final example is that we are working to seamlessly integrate our finance-based shopping product into our stores and customer experience centers so that all consumers can enjoy this experience, not just those who shop online. At the same time, we are adding additional lenders to the platform to expand the breadth and depth of offers available to our customers.

我們還讓消費者更容易通過自我升級選擇快遞取件。這種交付選項使客戶能夠在短短 30 分鐘內在我們的一家商店完成交易，這是一個雙贏的機會。我們的研究表明，客戶在使用時喜歡這種體驗，隨著時間的推移，它將使我們能夠降低成本。我們的最後一個例子是，我們正在努力將我們基於金融的購物產品無縫集成到我們的商店和客戶體驗中心，以便所有消費者都能享受這種體驗，而不僅僅是在線購物的消費者。與此同時，我們正在向平台添加更多的貸方，以擴大我們客戶可用的優惠的廣度和深度。

As we evolve our omnichannel experience, we are also updating our operating models to drive efficiency gains in our stores. For example, in our business offices, we have launched self-check-in capabilities for appraisal customers and have also enhanced e-sign functionality to better enable self-progression. Additionally, we are testing an improved digital customer queue to better manage appointments as well as new software to improve title speed and visibility. We anticipate these tools will enable us to reduce associate time spent per customer and shorten customer transaction times. Our associates are key to providing an exceptional customer experience, and we are focused on leveraging their skills in the most value-added manner.

隨著我們發展我們的全渠道體驗，我們也在更新我們的運營模式以提高我們商店的效率。例如，在我們的營業廳中，我們為評估客戶推出了自助簽到功能，並增強了電子簽名功能，以更好地實現自我進步。此外，我們正在測試改進的數字客戶隊列以更好地管理約會以及新軟件以提高標題速度和可見性。我們預計這些工具將使我們能夠減少每位客戶花費的員工時間並縮短客戶交易時間。我們的員工是提供卓越客戶體驗的關鍵，我們專注於以最具附加值的方式利用他們的技能。

We will also continue to selectively invest in key projects that have the potential to deliver new capabilities while lowering our costs. Examples include first, we're updating Max offer, our appraisal product for dealers, which is available in approximately 50 markets. Many of our dealers are still on the initial version, which does not provide instant offers and requires them to take instant vehicle pictures. We are rolling out a new product, which offers a fully digital instant offer experience to all dealers. We believe this will well position us to grow our dealer buys more efficiently and support higher volume over time.

我們還將繼續有選擇地投資於有可能在降低成本的同時提供新功能的關鍵項目。例如，首先，我們正在更新我們的經銷商評估產品 Max offer，該產品在大約 50 個市場有售。我們的許多經銷商仍在使用初始版本，該版本不提供即時報價並要求他們拍攝即時車輛照片。我們正在推出一款新產品，為所有經銷商提供全數字化的即時報價體驗。我們相信，這將使我們能夠更有效地增加經銷商的購買量，並隨著時間的推移支持更高的銷量。

Second, we are leveraging technology to enhance our logistics capability. We move approximately 2 million vehicles each year. We estimate that our internal logistics operation drives about a 20% cost advantage over third-party providers and improves our speed, predictability and control of moves. Enhancements to our transportation management system will enable us to consolidate loads, increase our mix of full loads and reduce the truck volume in and out of our stores. This will support our ability to keep our costs low as we complete moves even faster and more efficiently.

二是利用科技提升物流能力。我們每年運送大約 200 萬輛汽車。我們估計，與第三方供應商相比，我們的內部物流運營帶來了約 20% 的成本優勢，並提高了我們的速度、可預測性和移動控制。我們運輸管理系統的改進將使我們能夠整合負載，增加我們的滿載組合併減少進出我們商店的卡車數量。隨著我們更快、更高效地完成搬遷，這將支持我們保持低成本的能力。

Third, we are continuing to upgrade our auction experience. During the third quarter, we scaled our modernized vehicle detail page to 50% of dealers. This page is mobile-friendly, provides more relevant data to our dealers and improve search and filter functionality. It is also the springboard that we will use to launch capabilities we believe will further enhance our wholesale business, including AI-enhanced condition reports and proxy bidding. We are confident that our focused initiatives will drive efficiencies and grow our business over the long term.

三是持續升級拍賣體驗。在第三季度，我們將現代化的車輛詳細信息頁面擴展到 50% 的經銷商。此頁面適用於移動設備，可為我們的經銷商提供更多相關數據並改進搜索和過濾功能。這也是我們將用來啟動我們認為將進一步增強我們的批發業務的能力的跳板，包括人工智能增強的狀況報告和代理投標。我們相信，我們的重點舉措將提高效率並長期發展我們的業務。

In closing, we have spent almost 30 years building a diversified business that can profitably navigate the ups and downs of the used car industry. We have a strong balance sheet and access to capital. Our experience in inventory and margin management is the strength and we will continue to be thoughtful and manage our expenses pulling levers as necessary. While we're not able to predict how long the industry will remain challenged, we believe the pressures are transitory and that we are well positioned to manage through them and emerge an even stronger company. I want to thank our associates for everything that they're doing to support each other, our customers and our business our foundation remains strong, and we're excited about the future of our diversified business model.

最後，我們花了將近 30 年的時間建立了一家多元化的企業，能夠在二手車行業的起起伏伏中盈利。我們擁有強大的資產負債表和獲得資本的渠道。我們在庫存和利潤管理方面的經驗是我們的優勢，我們將繼續深思熟慮並在必要時管理我們的費用拉動槓桿。雖然我們無法預測該行業將面臨多長時間的挑戰，但我們相信壓力是暫時的，我們有能力應對這些壓力並成為一家更強大的公司。我要感謝我們的員工為相互支持、我們的客戶和我們的業務所做的一切，我們的基礎依然強大，我們對我們多元化業務模式的未來感到興奮。

With that, we'll be happy to take your questions. Ashley?

這樣，我們很樂意回答您的問題。阿什莉？

(Operator Instructions) And your first question comes from the line of Brian Nagel with Oppenheimer.

（操作員說明）您的第一個問題來自 Brian Nagel 與 Oppenheimer 的合作。

So I guess the question I have just with regard to sales. And maybe, Bill, if you could discuss a bit more just the trend of sales through the quarter. So we understand better how the business is performing here. And then also, you mentioned in your comments that you saw a market share declines, if you will, I guess, later in the period. It sounds like that was as a result of others taking more aggressive actions on price. You can elaborate further there. Who's doing -- what cohort of your competition is doing that? And how long should it -- how long would you expect that dynamic to persist?

所以我想我剛才的問題是關於銷售的。也許，比爾，如果你能多討論一下本季度的銷售趨勢。因此，我們可以更好地了解企業在這裡的表現。然後，你在評論中提到你看到市場份額下降，我想，如果你願意的話，在這段時間的晚些時候。這聽起來像是其他人在價格上採取更積極行動的結果。你可以在那裡進一步闡述。誰在做——您的競爭對手中有哪些人在做這件事？它應該持續多長時間——您希望這種動態持續多長時間？

And then I guess a follow-up to that, as you look at your business, and CarMax has historically been very, very good at managing inventories. But if you're starting to see now others take more aggressive action on price and you've held the line on margin. Could there be percolating issues within your inventory?

然後我想這是一個後續行動，當你看你的業務時，CarMax 在歷史上一直非常非常擅長管理庫存。但是，如果您現在開始看到其他人在價格上採取更積極的行動，並且您已經控制住了保證金線。您的庫存中是否存在滲透問題？

All right. There's a lot in there, Brian. So let me start with sales during the quarter. The last time we spoke, it was middle of September -- latter part of September, we talked about sales being down in the mid-teens. It actually got a little softer by the end of September, and it continued -- we continue to see even more softness in October and November. I'll save you from having to get back into the queue because I'm sure your next question is, well, how is December panning out?

好的。裡面有很多東西，布賴恩。因此，讓我從本季度的銷售額開始。我們最後一次談話是在 9 月中旬——9 月下旬，我們談到銷售額在十幾歲左右下降。到 9 月底，它實際上變得更軟了一點，而且還在繼續——我們在 10 月和 11 月繼續看到更加軟化。我會讓您免於重新排隊，因為我確定您的下一個問題是，12 月的結果如何？

December is actually running about where the quarter -- the third quarter ran on average. So it's a little bit better than November, but I would just remind you that we're also going to be -- we're comping over a little bit of easier performance, obviously, than we were from the third quarter that we will be doing in the fourth quarter.

12 月實際上與該季度的運行情況差不多——第三季度的平均運行情況。所以它比 11 月好一點，但我只想提醒你，我們也會 - 顯然，我們的表現比第三季度要好一些在第四季度做。

As far as market share, giving you some detail on market share declines. Year-to-date, like you said, we've still got -- we still have gains in share. We did see declines most recently in September and October, which is the latest title data that we have. But this speaks to why I always hesitate talking about market share on the short-term basis because sometimes there are some temporary pressures, and we saw competitors lowering prices and margins to move inventory, which I'll be honest with you, it's not surprising. I mean, we saw the -- a very similar play back in the '08, '09 recession. It's also the reason that we did much more expansive pricing elasticity testing. And through those tests, we're confident that even though we would have sold more cars if we had lowered the prices, we actually would have we made less money.

至於市場份額，給你一些關於市場份額下降的細節。年初至今，就像你說的，我們仍然有——我們仍然有份額增長。我們確實在 9 月和 10 月看到了最近的下降，這是我們擁有的最新標題數據。但這說明了為什麼我總是在短期內猶豫談論市場份額，因為有時會有一些暫時的壓力，我們看到競爭對手降低價格和利潤以轉移庫存，老實說，這並不奇怪.我的意思是，我們在 08 年、09 年的經濟衰退中看到了非常相似的情況。這也是我們進行更廣泛的定價彈性測試的原因。通過這些測試，我們相信即使我們降低價格會賣出更多的汽車，但實際上我們賺的錢會更少。

And as I said in my opening remarks and what I've always said is we're always -- what we're going after is profitable long-term market share gains. And I think we've got a great track and record on that. I think your other question was just who's getting that. Look, it's -- this is a highly dispersed business, lots and lots of players out there. I can't point to any of them. I just know that widespread pressures of folks trying to move their inventory and get rid of it.

正如我在開場白中所說的那樣，我一直在說的是，我們始終——我們追求的是盈利的長期市場份額增長。我認為我們在這方面有很好的記錄。我認為你的另一個問題是誰得到的。看，這是 - 這是一個高度分散的業務，那裡有很多很多玩家。我不能指出其中任何一個。我只知道人們試圖轉移庫存並擺脫庫存的普遍壓力。

So we'll take our next question from Rajat Gupta with JPMorgan.

因此，我們將從摩根大通的 Rajat Gupta 那裡回答下一個問題。

Great. Maybe firstly, just on retail GPU. Obviously, very well managed again this quarter. You talked about the fact that you're not discounting as much as some of your competitors. But at some point, you have to move the inventory that you have. It seems like it's aging and it's getting older on the lot. So like what gives ultimately? I mean, would you have to consider the discounting at some point to move their inventory out the door if not this quarter, maybe the next quarter? .

偉大的。也許首先，只是在零售 GPU 上。顯然，本季度再次管理得很好。你談到了一個事實，即你沒有像你的一些競爭對手那樣打折。但在某些時候，您必須移動您擁有的庫存。看起來它正在老化，而且它在很多地方都變老了。那麼最終會給出什麼？我的意思是，如果不是這個季度，也許是下個季度，您是否必須考慮在某個時候打折以將他們的庫存移出門外？ .

So how do you manage that transition? And how should we think about the implications to Retail GPU maybe in the next quarter or 2 through that pricing position? And I have a follow-up.

那麼你如何管理這種轉變呢？我們應該如何考慮通過該定價位置可能在下一季度或第二季度對零售 GPU 的影響？我有一個後續行動。

Yes. So Raj, great question. This is where I think we really shine when it comes to inventory management. I'm really pleased. If you notice -- I talked about how much our total inventory has gone down, but we're able to maintain saleable units. And that's because the team did a phenomenal job really cleaning up the stuff that we had, whether we're waiting on parts, missing titles. We really worked hard to clean up a lot. So to your point, the aging inventory, it's one of the reasons why you didn't see more movement in our ASPs our average selling prices given the depreciation. The team did a phenomenal job working through that, getting it out there.

是的。那麼 Raj，好問題。這就是我認為我們在庫存管理方面真正出色的地方。我真的很高興。如果你注意到——我談到了我們的總庫存下降了多少，但我們能夠維持可售單位。那是因為團隊做了一項非凡的工作，真正清理了我們擁有的東西，無論我們是在等待零件，還是缺少頭銜。我們真的很努力地清理了很多。因此，就您的觀點而言，老化的庫存是您沒有看到我們的平均銷售價格在折舊的情況下出現更多變化的原因之一。該團隊完成了一項非凡的工作，將其發佈到那裡。

And then with our sophisticated price testing, we just realized, look, there's no sense and given this away. And so again, we feel like we put ourselves in a really good position going forward. And I think what you'll see going forward is your retail average selling prices are going to come down a lot more than what you've seen up to this point. So we feel good about retail GPU. Obviously, we'll continue to test the elasticity as we go forward. But if elasticity holds, I think you'll see us continue to have robust retail GPU.

然後通過我們複雜的價格測試，我們才意識到，看，沒有任何意義，就放棄了。因此，我們再次覺得我們將自己置於一個非常有利的位置。而且我認為你會看到未來的是你的零售平均售價將比你到目前為止看到的下降更多。所以我們對零售 GPU 感覺良好。顯然，我們將在前進的過程中繼續測試彈性。但如果彈性保持不變，我想你會看到我們繼續擁有強勁的零售 GPU。

Got it. And maybe like the other gross profit line. If I look at the volumes that you did 3 years ago, a very similar to the volumes that you have today, really slightly lower today. And that other gross profit was $94 million and it's now $59 million despite your third-party financing fees actually better. So why is that like down almost 50% on a similar level of volume. I mean, is there any opportunity to reduce the cost there? I know you mentioned that you want to retain the technicians, but how long are we going to see this kind of run rate before it can recouple to what you had in the past?

知道了。也許就像其他毛利線一樣。如果我看一下您 3 年前的交易量，與今天的交易量非常相似，但今天確實略低。其他毛利是 9400 萬美元，現在是 5900 萬美元，儘管你的第三方融資費用實際上更好。那麼，為什麼在類似的交易量水平上下降了近 50%。我的意思是，有沒有機會降低那裡的成本？我知道你提到過你想留住技術人員，但我們要多久才能看到這種運行率才能恢復到你過去的水平？

Yes. Specifically with the other margin, it's what you really need to do is look within the service business. And this quarter, a couple of things. Number 1 was just with sales volumes being where they were down 20% year-over-year, that places a fair bit of deleverage pressure on the service business. That's number 1.

是的。特別是對於其他邊際，您真正需要做的是在服務業務中尋找。這個季度，有幾件事。第一，銷量同比下降 20%，這給服務業務帶來了相當大的去槓桿化壓力。那是第一名。

But number 2, of almost equal importance this quarter, about $15 million year-over-year was our decision, the correct decision is to hold on to technicians, right? It's a very difficult position to staff. It is most important that we retain and we recruit the technicians because when we come out of the cycle, we want to be in a position where we can actually ramp up our inventory quickly faster than our competitors. But that being said, it is an investment that flows through that service line. And again, this quarter, it was roughly $15 million given the current sales levels. But it's absolutely the right decision for the medium term and for definitely for the longer term. That was the biggest pressure this quarter, Rajat.

但第二個，本季度幾乎同樣重要，我們的決定同比增長約 1500 萬美元，正確的決定是留住技術人員，對吧？這對員工來說是一個非常困難的職位。最重要的是我們要留住並招聘技術人員，因為當我們走出週期時，我們希望能夠比競爭對手更快地實際增加庫存。但話雖如此，這是一項流經該服務線的投資。再一次，考慮到當前的銷售水平，本季度大約為 1500 萬美元。但從中期和長期來看，這絕對是正確的決定。這是本季度最大的壓力，Rajat。

Yes. Rajat, the only thing I would add is, obviously, you're comparing it to a few years ago, we have a lot more production capacity now because we have more technicians. We have more space. So that's feeding into it as well.

是的。 Rajat，我唯一要補充的是，顯然，你是在將它與幾年前進行比較，我們現在有更多的生產能力，因為我們有更多的技術人員。我們有更多的空間。所以這也影響了它。

Sorry, just to follow up. So what's your view on the cycle recovery? I mean, like are you anticipating things like rebound at some point next year? Or I mean, what kind of conviction do you have on that? Like so -- just so that you might have to take some of these type not actions more aggressively. Just curious on the thought process there.

抱歉，只是為了跟進。那麼您對周期復蘇有何看法？我的意思是，你是否期待明年某個時候出現反彈之類的事情？或者我的意思是，你對此有什麼樣的信念？像這樣 - 只是為了讓您可能不得不採取其中一些類型而不是更積極的行動。只是對那裡的思維過程感到好奇。

Yes. Look, Rajat, Your guess is as far as what's going to happen next year as good as mine. I think what we're trying to do is put ourselves in a position that regardless of what happens in the upcoming quarters, will flex up or if we need to pull additional levers, we'll pull additional leverage. So we're just trying to give ourselves flexibility at this point.

是的。聽著，Rajat，就明年將要發生的事情而言，你的猜測和我的一樣好。我認為我們正在努力做的是讓自己處於一個位置，無論接下來的幾個季度會發生什麼，都會彎曲，或者如果我們需要拉動額外的槓桿，我們將拉動額外的槓桿。所以我們只是想在這一點上給自己靈活性。

Yes. I mean we are laser-focused on what we can control, and that's what we're taking actions on. And so you can take a look at our SG&A and how we bent the curve there. You can take a look at service, yes, it's up. But again, there's -- the reason it's up is that we're investing in our technicians because we know and we're going to get through the cycle. And when we emerge from it, we want to be in a really strong position and reduce cars quickly.

是的。我的意思是我們非常專注於我們可以控制的事情，這就是我們正在採取行動的事情。所以你可以看看我們的 SG&A 以及我們如何在那裡彎曲曲線。你可以看看服務，是的，它起來了。但同樣，它的原因是我們正在投資我們的技術人員，因為我們知道並且我們將度過這個週期。當我們擺脫困境時，我們希望處於非常有利的地位並迅速減少汽車。

We'll take our next question from John Healy with Northcoast Research.

我們將接受來自 Northcoast Research 的 John Healy 的下一個問題。

Just wanted to ask for a little bit more color on the SG&A cadence. I appreciate the comp cadence, but I was just wondering if you could help us think about the actions you took in Q3 and maybe the run rate and really, I don't know if we can think about an SG&A to gross kind of level for the next couple of quarters? Or just help us understand kind of what might be reasonable for you guys just because there's been a lot of growth, SG&A and now it sounds like you're calibrating that bet. So anything you could provide there would be helpful.

只是想在 SG&A 節奏上要求更多的顏色。我很欣賞 comp 節奏，但我只是想知道你是否可以幫助我們考慮你在第三季度採取的行動，也許還有運行率，真的，我不知道我們是否可以考慮將 SG&A 考慮到總水平接下來的幾個季度？或者只是幫助我們了解什麼對你們來說可能是合理的，因為有很多增長，SG&A，現在聽起來你們正在校準這個賭注。所以你能提供的任何東西都會有所幫助。

Yes. Great. Thank you, John. Yes, like I said in my prepared remarks, we have significantly bent the curve on our SG&A go back to the first half of the year as a whole, it was up 16% to 17% year-over-year. We've bent that down to 3% year-over-year growth this quarter. But again, when you back out the $23 million settlement, that we received last year in the third quarter, you're really looking at a slight decrease in overall SG&A. So material change in the curve.

是的。偉大的。謝謝你，約翰。是的，就像我在準備好的發言中所說的那樣，我們已經顯著彎曲了 SG&A 的曲線，整體上可以追溯到今年上半年，同比增長 16% 至 17%。我們已將本季度的同比增長率下調至 3%。但同樣，當你取消我們去年第三季度收到的 2300 萬美元和解協議時，你真的看到整體 SG&A 略有下降。所以材料在曲線上發生變化。

We would expect that to carry forward into the fourth quarter and into next year. And why is that? It's because it's the actions we've been talking about, right? There's really kind of 2 groups of actions. Number 1 is on the more variable perspective, we've been lowering our headcount, lowering our staffing from an attrition basis in our stores. So that actually takes a little bit more time, right, because you're managing it through attrition, but we believe it's the right thing to do from a culture standpoint. And that has been bleeding down really since the second quarter when we start talking about it. We expect that will carry forward to the fourth quarter and into next year.

我們預計這將延續到第四季度和明年。為什麼是這樣？這是因為這是我們一直在談論的行動，對吧？確實有兩組動作。第一是從更可變的角度來看，我們一直在減少我們的員工人數，從我們商店的減員基礎上減少我們的員工。所以這實際上需要多一點時間，對吧，因為你是通過自然減員來管理它，但我們相信從文化的角度來看這是正確的做法。自從我們開始談論它的第二季度以來，這種情況就一直在減少。我們預計這將延續到第四季度和明年。

The second piece is really taking a look at our fixed costs and actively managing there as well. So I've talked about looking at our usage of contractors in the corporate home office, we've pulled back there, right? And we've also essentially paused our hiring in the corporate office. We are still hiring backfills kind of key positions that we have as well, kind of strategic positions as well. But materially so, we've kind of paused our corporate overhead hiring as well. So we've taken strong actions. We believe they are appropriate actions for the marketplace that we're operating in. If we need to take further actions, we would do that as well if required, but we believe we're strongly positioned right now.

第二部分是真正了解我們的固定成本並積極管理那裡。所以我已經談到要查看我們在公司家庭辦公室中對承包商的使用情況，我們已經撤回那裡，對嗎？我們也基本上暫停了公司辦公室的招聘。我們仍在招聘回填我們擁有的關鍵職位，以及戰略職位。但實質上，我們也暫停了公司間接招聘。所以我們採取了強有力的行動。我們認為它們是適合我們所處市場的適當行動。如果我們需要採取進一步行動，我們也會在需要時這樣做，但我們相信我們現在處於有利地位。

And to answer your question about like the cadence, I would expect the fourth quarter to look similar to the third quarter once you back out the settlement from last year.

為了回答你關於節奏的問題，我希望一旦你退出去年的和解協議，第四季度就會與第三季度相似。

And when you say similar to the Q3, would that be in terms of dollars? Or would that be in terms of kind of SG&A type gross?

當你說類似於 Q3 時，會以美元為單位嗎？還是就 SG&A 類型的總額而言？

Yes. So it's more of a year-over-year SG&A and how that's moving. It's not to grow. So I think the challenge, John, with the leverage ratio, the SG&A to gross profit is we can control SG&A, and I believe we've been doing that effectively. The challenge is the gross profit number. So depending on where that gross profit number ends up and sharp movements quarter-to-quarter make it really difficult to manage that leverage ratio. .

是的。所以它更像是一個同比 SG&A 以及它是如何移動的。不是為了成長。所以我認為挑戰，約翰，槓桿率，SG&A 與毛利潤的關係是我們可以控制 SG&A，我相信我們一直在有效地做到這一點。挑戰在於毛利潤數字。因此，根據毛利潤數字的最終位置和季度間的劇烈變動，很難管理槓桿率。 .

So in terms of -- as I mentioned earlier, we'll control what we can control and that's what we're focused on. We're focused on that SG&A line. So I would -- my comments are specifically about SG&A growth year-over-year in the quarter.

所以就——正如我之前提到的，我們將控制我們能控制的，這就是我們關注的重點。我們專注於 SG&A 系列。所以我會 - 我的評論特別針對本季度 SG&A 的同比增長。

Perfect. And just one follow-up question just about the gross profit per unit levels. I feel like you've kind of already answered this, but I just wanted to ask it maybe in a different way. Hypothetically, if ASPs fall another 5% to 10% over the next couple of quarters, either given market conditions or just changing of mix. Are you guys still confident that the $2,000 to $2,200 GPU level is achievable even in that scenario. So I just wanted to ask that more directly.

完美的。還有一個關於每單位毛利水平的後續問題。我覺得您已經回答了這個問題，但我只是想以不同的方式提問。假設，如果 ASP 在接下來的幾個季度內再下降 5% 到 10%，要么考慮到市場條件，要么只是改變組合。你們是否仍然相信即使在那種情況下也可以實現 2,000 美元到 2,200 美元的 GPU 水平？所以我只是想更直接地問這個問題。

Yes. Look, I think we feel very comfortable where we're running the retail GPUs. We'll continue to monitor the test. But look, I expect ASPs to continue to fall, which I think overall for the industry is a good thing to help drive some gap between new and late-model use. So we feel comfortable with where our GPUs are and we'll continue to test.

是的。看，我認為我們在運行零售 GPU 的地方感覺非常舒服。我們將繼續監控測試。但是看，我預計 ASP 會繼續下降，我認為這對整個行業來說是一件好事，有助於縮小新模型和最新模型使用之間的差距。所以我們對 GPU 的位置感到滿意，我們將繼續測試。

We'll take our next question from Daniel Imbro with Stephens Inc.

我們將接受來自 Stephens Inc. 的 Daniel Imbro 的下一個問題。

I want to follow up on a question on expenses. Enrique, can you just provide some more color around really what the biggest inflationary drivers are in that other overhead cost line? I think you pulled back, you said on some of the labor in the CECs and it's still up $40 million year-over-year. So is any of that onetime increase? And then just taking a step back on expenses.

我想跟進一個關於費用的問題。恩里克，你能否提供更多關於其他間接費用線中最大的通脹驅動因素的更多顏色？我認為你退縮了，你對 CEC 的一些勞動力說了，但它仍然比去年同期增加了 4000 萬美元。那麼，有任何一次性增加嗎？然後只是在開支上退一步。

I think even last quarter, we talked about one of the reasons that you want to reduce headcount too quickly is the need to hire back and that gets harder next year. But now it sounds like we're expecting a softer backdrop for the next 12-plus months. So I guess, why not reduce expenses or headcount more quickly across other parts of the enterprise?

我認為即使在上個季度，我們也談到過快裁員的原因之一是需要重新僱用員工，而這在明年會變得更加困難。但現在聽起來我們預計未來 12 個多月的背景會更加溫和。所以我想，為什麼不更快地減少企業其他部門的開支或員工人數呢？

Yes. And what I'd say there is that we did. And so as sales got more challenged third quarter, we went deeper into the staffing levels in the field. And so it's still through attrition, so it is take a little bit longer. But at the same time, we did lower our staffing targets to reflect the current sales environment. So I'd tell you, we did go deeper into managing those expenses.

是的。我要說的是我們做到了。因此，隨著第三季度銷售面臨更大挑戰，我們更深入地研究了該領域的人員配置水平。所以它仍然是通過減員，所以需要更長的時間。但與此同時，我們確實降低了人員配置目標以反映當前的銷售環境。所以我告訴你，我們確實更深入地管理了這些費用。

And in regards to your first question, I think you're asking about the other expense line and what goes in there because it was a 41% increase if you just look at the release, right? That is primarily because we're comping over the $23 million settlement that we had last year. If you back that out, you're looking at less than half of that of an increase. And what that really is attributed to is our investments in technology and product, right? And that's what that's attributed to.

關於你的第一個問題，我想你問的是另一條費用線以及那裡的內容，因為如果你只看發布，它會增加 41%，對嗎？這主要是因為我們正在為去年達成的 2300 萬美元和解而努力。如果你反駁這一點，你看到的增幅還不到一半。而這真正歸功於我們對技術和產品的投資，對吧？這就是歸因於此的原因。

What I'd tell you, though, as well, if you compare it to prior quarters, there's a reduction in the pace of that investment from a year-over-year standpoint. And so we've been pulling back there as well. You also see that manifested in our CapEx guidance for this year. We've taken that down from $500 million to $450 million. The largest chunk of that decrease really comes from kind of slowing down in some of those projects. In addition to just slowing down some of the capacity initiatives that we have out there in terms of growing our capacity with lower volume, we're just slowing down some of those investments.

不過，我要告訴你的是，如果你將它與前幾個季度進行比較，從同比的角度來看，投資步伐有所放緩。所以我們也一直在撤退。您還可以在我們今年的資本支出指南中看到這一點。我們已將其從 5 億美元降至 4.5 億美元。減少的最大部分實際上來自其中一些項目的放緩。除了只是放慢我們在以較低的容量增加容量方面的一些容量計劃之外，我們只是放慢了其中的一些投資。

And Daniel, the only thing I would add there is, look, we're -- and our culture is one that's a people-first mindset. Our people are the reason for our success. And that's the reason we've chosen to allow attrition to get us to where we need to be. We'll obviously continue to monitor the situation, but we're very comfortable with allowing attrition to get us to where we need to be.

丹尼爾，我唯一要補充的是，看，我們是——我們的文化是一種以人為本的心態。我們的員工是我們成功的原因。這就是我們選擇允許自然減員將我們帶到我們需要去的地方的原因。我們顯然會繼續監控情況，但我們很樂意讓自然減員讓我們到達我們需要去的地方。

We'll take our next question from John Murphy with Bank of America.

我們將接受來自美國銀行的約翰墨菲的下一個問題。

I just wanted to focus sort of on the supply side here just for a second. I mean, when we think about the 1 to 6-year-old car fleet, that's going to continue to probably strength for the next couple of years. Competition is more focused on them, Bill, as you mentioned, in the dealer. So it seems like the available 1 to 6-year-old car fleet is supply is going to continue to shrink. But certainly, what's available to you and other folks in the secondary market, but you've kind of mentioned going lower in the age and price spectrum to drive volume, and you've shown an ability to kind of manage that fairly well.

我只想在這里關註一下供應方面。我的意思是，當我們考慮使用 1 至 6 年的車隊時，在接下來的幾年裡，這可能會繼續保持強勁勢頭。競爭更多地集中在他們身上，比爾，正如你提到的，在經銷商身上。因此，可用的 1 至 6 年車齡的汽車供應量似乎將繼續減少。但可以肯定的是，你和二級市場上的其他人可以獲得什麼，但你已經提到在年齡和價格範圍內降低以推動銷量，並且你已經展示了一種相當好的管理能力。

So I'm just curious how fast you can move on that to potentially drive volume back up here, lower price points, but higher grosses and maybe better returns just on the capital employed.

所以我很好奇你能以多快的速度推進它，以潛在地推動銷量回到這裡，降低價格點，但更高的毛利率，也許只是在所使用的資本上獲得更好的回報。

Yes. Thanks for the question, John. It's interesting because we're kind of living a very similar life to what we did after the '08 and '09 recession. You remember where you come out of that and you have less newer cars and it kind of has to work its way through. I'd tell you, we're in a better position today than we were back there just because our self-sufficiency is so high. And we'll be able to sell what consumers are looking for, and we're going to be able to get that really in a better way than we could after '08, '09 because our self-sufficiency is so high.

是的。謝謝你的問題，約翰。這很有趣，因為我們過著與 08 年和 09 年經濟衰退後的生活非常相似的生活。你記得你從哪裡出來的，你的新車越來越少，而且它必須努力通過。我會告訴你，我們今天的處境比過去更好，因為我們的自給自足度很高。我們將能夠銷售消費者正在尋找的東西，而且我們將能夠以比 08 年、09 年之後更好的方式真正做到這一點，因為我們的自給自足度非常高。

In my opening comments, one of the reasons our buys were down so far obviously, depreciation was the biggest lever, but there's also -- we made some decisions just to slow down buys. And so there were retail cars that we purposely did not buy because of the risk of those cars in a highly depreciating type of market. So again, I'm very comfortable with where we are, and I think we're better positioned than we were in '08 and '09, and I think we did a phenomenal job in '08 and '09 navigating that period.

在我的開場評論中，到目前為止，我們的購買量明顯下降的原因之一是，貶值是最大的槓桿，但也有——我們做出了一些決定來放慢購買速度。因此，我們故意不購買零售汽車，因為這些汽車存在高度貶值的市場風險。因此，我再次對我們所處的位置感到非常滿意，我認為我們比 08 年和 09 年處於更好的位置，而且我認為我們在 08 年和 09 年的那個時期做得非常出色。

But maybe to follow up on that, Bill. I mean how fast can you move on this to drive comps positive? I mean we understand the kind of the headwinds in sort of what was traditionally your core. I mean, this is obvious, you know it. I mean, you're going after it. I mean when do you kind of just push and just increase maybe materially the penetration of these older vehicles to drive the volumes higher?

但也許可以跟進，比爾。我的意思是你能以多快的速度推進這件事來推動 comps 積極？我的意思是我們理解傳統上你的核心是什麼的逆風。我的意思是，這很明顯，你知道的。我的意思是，你正在追求它。我的意思是你什麼時候只是推動並可能實質性地增加這些舊車的滲透率以提高銷量？

Because I mean, the one thing that -- it's very admirable is that the variable -- the focus on GPUs, which is a variable cost analysis, but you do have these fixed costs that are high, particularly as Enrique was talking about these technicians. So you got to cover costs at some point, not -- and I mean, when can you do this? I mean it's something you're steady to do but you're not doing it.

因為我的意思是，有一件事——非常令人欽佩的是變量——關注 GPU，這是一種可變成本分析，但你確實有這些固定成本很高，特別是當恩里克談到這些技術人員時.所以你必須在某個時候支付成本，而不是 - 我的意思是，你什麼時候可以這樣做？我的意思是這是你堅定不移地去做但你沒有去做的事情。

Well, when you talk about penetration of the older vehicles, look, the penetration and how much we put out there is driven by the consumer demand. And not everybody wants an older higher mileage type of vehicle that's less expensive. So again, that's all driven by demand. And as we see consumers continue to demand that, we'll continue to put that out. But again, not everybody is -- not everyone is looking for that.

好吧，當你談論舊車的滲透率時，看，滲透率以及我們在那裡投放的數量是由消費者需求驅動的。並不是每個人都想要更便宜、里程數更高的老式車輛。同樣，這都是由需求驅動的。當我們看到消費者繼續要求時，我們將繼續推出它。但同樣，不是每個人都——不是每個人都在尋找它。

Okay. So -- I mean it's really a supply -- I mean it's getting to the supply of the core product more than into push holder.

好的。所以——我的意思是它真的是一種供應——我的意思是它更多地供應核心產品而不是推桿。

Well, I think it's just more -- it's a bigger issue. It's just -- you have to go back to vehicle affordability. It's just keeping a lot of people on the sidelines right now. And it's not only vehicle affordability. That's the line share, but you also have rising interest rates. If I look at CAF payments, just Tier 1 payment, just as an example, the monthly payment, which is the biggest factor on whether someone's going to decide to buy a car or not, it's up $150 year-over-year with the majority of that being driven by the vehicle price with a smaller piece being driven by the interest rates.

好吧，我認為這只是更多 - 這是一個更大的問題。只是——你必須回到汽車的負擔能力上。它只是讓很多人現在處於觀望狀態。這不僅僅是車輛的負擔能力。那是線路份額，但你的利率也在上升。如果我看一下 CAF 付款，僅 Tier 1 付款，舉個例子，每月付款，這是決定某人是否決定購買汽車的最大因素，大多數人同比增長 150 美元其中一部分是由車輛價格驅動的，一小部分是由利率驅動的。

And I think you've got that, which is obviously keeping people on the sidelines, not to mention just the overall inflationary pressures. And I think what we're trying to do is make sure that we've got the right amount of inventory, the right mix of inventory out there to meet the consumer demand and be very thoughtful about our margins in order to cover the costs and the way that we're taking a people-first mindset on how we approach the business.

而且我認為你已經明白了，這顯然讓人們保持觀望，更不用說整體通脹壓力了。而且我認為我們正在努力做的是確保我們擁有適量的庫存，正確的庫存組合以滿足消費者需求，並非常考慮我們的利潤率以支付成本和我們採取以人為本的心態來處理業務的方式。

And our next question comes from Seth Basham with Wedbush Securities.

我們的下一個問題來自 Wedbush Securities 的 Seth Basham。

Just to clarify, for this sales environment, with comps continuing to trend down 20%, do you still expect SG&A to be flat to up year-over-year in the fourth quarter and going forward?

澄清一下，對於這種銷售環境，在 comp 繼續下降 20% 的情況下，您是否仍預計 SG&A 在第四季度和未來會同比持平或上升？

No. I mentioned that you need to back out the $23 million we got last year in the third quarter. And so we would expect to be down year-over-year in the fourth quarter. Now I guess it's a little bit tricky set as you know, like quarter-to-quarter things can happen, but our expectation is that we would be down year-over-year in the fourth quarter.

不，我提到你需要收回去年第三季度獲得的 2300 萬美元。因此，我們預計第四季度將同比下降。現在我想這有點棘手，就像你知道的那樣，季度到季度的事情可能會發生，但我們的預期是第四季度我們會同比下降。

Okay. And how -- again, how much down? And when you think about the 20% decline persisting, when do you decide to get more aggressive on SG&A?

好的。又如何——再一次，下降了多少？當您考慮持續下降 20% 時，您什麼時候決定在 SG&A 方面採取更激進的措施？

Yes, we're not going to provide guidance on how much down in the fourth quarter because, again, there's some variability quarter-to-quarter. But what I'd tell you is our expectation is that it will be down year-over-year. And if you look at the kind of the trend that we've been managing to, I think we've been focused on SG&A, and we've been pulling the right levers so far. Now if business doesn't pick up, and deteriorates, we have other levers we can pull, right? But for the time being, we believe we pulled the right levers. And we'll continue to manage the business prudently as we always do.

是的，我們不會就第四季度下降多少提供指導，因為季度與季度之間存在一些差異。但我要告訴你的是，我們的預期是它會同比下降。如果你看看我們一直在努力的趨勢，我認為我們一直專注於 SG&A，到目前為止我們一直在拉動正確的槓桿。現在，如果業務沒有好轉，並且惡化，我們還有其他可以拉動的槓桿，對嗎？但就目前而言，我們相信我們採取了正確的措施。我們將一如既往地繼續審慎經營業務。

Got it. And my follow-up question is just on the wholesale business. The wholesale to retail ratio in terms of units sold declined sharply to 66% this quarter. Would you consider this the new normal?

知道了。我的後續問題只是關於批發業務。本季度批發與零售銷量的比率急劇下降至 66%。你會認為這是新常態嗎？

No, I consider this what you would see in a highly depreciating market. When prices are going down a lot like they have been, and consumers have been told for the last year that it's the best time to sell their car. They can get more than they could have ever gotten before. There's a disconnect there. And so as prices come down, it always drives our buy rate down. The other thing I would just add to that is that we stepped back our appraisal advertising, just given the volatility of the market. So no, I don't consider this the new norm.

不，我認為這是您在高度貶值的市場中會看到的情況。當價格像往常一樣大幅下跌時，消費者在去年就被告知現在是賣車的最佳時機。他們可以獲得比以往任何時候都多的東西。那裡有脫節。因此，隨著價格下降，它總是會降低我們的購買率。我要補充的另一件事是，考慮到市場的波動性，我們縮減了評估廣告。所以不，我不認為這是新規範。

And our next question comes from Sharon Zackfia with William Blair.

我們的下一個問題來自 Sharon Zackfia 和 William Blair。

Following up on the SG&A question. I guess, is there a way to contextualize how much you've taken out year-to-date of SG&A and what that run rate is now in the fourth quarter? Because I'm assuming that those initiatives continued in the third quarter and into the fourth quarter.

跟進 SG&A 問題。我想，有沒有辦法將今年迄今 SG&A 的支出與第四季度的運行率聯繫起來？因為我假設這些舉措在第三季度和第四季度繼續進行。

Yes. I think the better way to think about it, Sharon, or the best way to think about it is just the cadence, the year-over-year cadence that we've had because just always seasonality that occurs, right, quarter-to-quarter in our business, and that also impacts SG&A. But if you -- again, if you go back to the first half of the year, Q1, we grew SG&A 19% up year-over-year in the first quarter. In the second quarter, it was up 16% year-over-year. This quarter, if you back out legal settlement that we got last year, we are down 1%. So that's a significant decrease in the pace of SG&A.

是的。我認為更好的思考方式，莎倫，或者最好的思考方式就是節奏，我們所擁有的年復一年的節奏，因為總是會出現季節性，對，每季度 -我們業務的一個季度，這也會影響 SG&A。但是，如果你——再一次，如果你回到今年上半年，第一季度，我們在第一季度的 SG&A 同比增長了 19%。第二季度同比增長16%。本季度，如果你撤銷我們去年獲得的法律和解，我們將下降 1%。所以這是 SG&A 步伐的顯著下降。

And so we are focused on it. We are managing to the current environment. right? We think we're doing so appropriately. Now if the business continues to be challenged, there's other things we can do. But for the time being, we've taken some pretty material steps to manage our SG&A.

所以我們專注於它。我們正在管理當前的環境。正確的？我們認為我們這樣做是恰當的。現在，如果業務繼續受到挑戰，我們還有其他事情可以做。但就目前而言，我們已經採取了一些非常重要的步驟來管理我們的 SG&A。

Yes. I think part of the confusion is the -- it sounds as if you're expecting SG&A to be down similarly like down 1% in the fiscal fourth quarter year-over-year, but it also sounds as if you're continuing to proactively manage SG&A. So I think a lot of us are trying to reconcile that in our heads as to why we wouldn't see SG&A down a bit more year-over-year than what you saw in the third quarter, if that makes sense.

是的。我認為部分混亂是 - 聽起來好像您預計 SG&A 會在第四財季同比下降 1%，但聽起來好像您會繼續積極主動地管理 SG&A。所以我認為我們中的很多人都在努力調和我們的想法，為什麼我們不會看到 SG&A 同比下降比第三季度多一點，如果這是有道理的話。

Yes. Well we expect to continue to see SG&A kind of to go down. I think on an individual quarter, it gets a little bit challenging to give you a number that we're managing to. Many things can happen in the quarter. But what I'd tell you is thematically and practically, we expect to continue to manage our SG&A down from a year-over-year basis.

是的。好吧，我們預計 SG&A 會繼續下降。我認為在一個單獨的季度，給你一個我們正在設法做到的數字有點挑戰。本季度可能會發生很多事情。但我要告訴你的是主題和實踐，我們希望繼續管理我們的 SG&A，同比下降。

Okay. Maybe separately, I mean, how should we think about SG&A on a full year basis for next year? You've got a lot of moving parts. You kind of have to keep your muscle intact for a potential rebound, but at the same time, you're dealing with a very difficult macro climate. So as we think about next year, particularly with the curtailment and the unit openings, mean how are you viewing SG&A dollar growth?

好的。也許分開，我的意思是，我們應該如何考慮明年全年的 SG&A？你有很多活動部件。為了潛在的反彈，你必須保持肌肉完好無損，但與此同時，你要應對非常困難的宏觀氣候。因此，當我們考慮明年時，尤其是在削減和單位開放的情況下，意味著您如何看待 SG&A 美元的增長？

Yes. The way we're looking at SG&A is we've given guidance in the past, like, hey, we need 5% to 8% gross profit growth to lever. I think in this kind of environment, right, in this kind of macro backdrop, that kind of guidance is less important than what I'm about to say. So we are actually managing and our goal is to get to the mid 70% SG&A to gross profit, right? That is our first step on the way to improving our SG&A.

是的。我們看待 SG&A 的方式是我們過去給出的指導，比如，嘿，我們需要 5% 到 8% 的毛利潤增長來槓桿。我覺得在這樣的環境下，對吧，在這樣的宏觀背景下，那種引導沒有我要說的那麼重要。所以我們實際上是在管理，我們的目標是讓 SG&A 達到毛利潤的 70% 左右，對吧？這是我們改進 SG&A 的第一步。

Now we're going to need gross profit growth there, right? But that is our first step. Over time, we have talked about having an operating model that's more efficient than what it used to be, and we still expect that. That's going to be over time, though. Omni transformation, and you can take a look at other retailers that have gone through it, it takes time to get to a better and more efficient operating model. But we expect to get back to where we used to be. It's just going to take time.

現在我們需要那裡的毛利潤增長，對嗎？但這是我們的第一步。隨著時間的推移，我們一直在談論擁有一種比過去更高效的運營模式，我們仍然期待這一點。不過，這將隨著時間的推移而發生。全方位轉型，你可以看看其他已經經歷過的零售商，要達到更好、更高效的運營模式需要時間。但我們希望回到過去的狀態。這只是需要時間。

Our first step is to get to the mid-70% SG&A to gross profit, right? But again, we're going to need gross profit support to get there. In the meantime, we're going to continue to manage our SG&A appropriately for the market, and that's what we do. And you can see that's exactly what we did in the third quarter. We expect to carry that forward into the fourth quarter and into next year. (inaudible)

我們的第一步是讓 SG&A 達到毛利潤的 70% 左右，對嗎？但同樣，我們將需要毛利支持才能實現目標。與此同時，我們將繼續為市場適當地管理我們的 SG&A，這就是我們所做的。你可以看到這正是我們在第三季度所做的。我們希望將其延續到第四季度和明年。 （聽不清）

Yes. And I think, Sharon, we'll also have a lot more visibility after the fourth quarter to really be able to tell you more depending on how the business does between now and then.

是的。而且我認為，莎倫，我們在第四季度之後也會有更多的知名度，以便真正能夠根據業務現在和那時的表現告訴你更多。

(Operator Instructions) We'll go next to Craig Kennison with Baird.

（操作員說明）我們將與 Baird 一起去 Craig Kennison 旁邊。

And I'll try to hit the SG&A topic in a different way. But there's been a change in the competitive landscape, and I think it's been to your favor. And I'm wondering if philosophically, you could make a change in how aggressive you are with respect to SG&A, given that winning in this market may not be a sprint anymore, but might truly be a marathon. And allow you to throttle back more aggressively than just low single-digit percentage cuts?

我將嘗試以不同的方式討論 SG&A 主題。但是競爭格局發生了變化，我認為這對你有利。我想知道從哲學上講，你是否可以改變你在 SG&A 方面的積極性，因為在這個市場上獲勝可能不再是短跑，而是真正的馬拉松。並允許你比僅僅低個位數的百分比削減更積極地節流？

Yes. Craig, I think I think about it a little bit differently. I think similar to you, look, we have competitors that are obviously struggling. I don't think now is the time where given our financial strength, where we should be pulling back a whole bunch on SG&A. We have pulled considerably back. But at the same time, as I talked about in my opening remarks, we also want to make sure that we're continuing to build for the future. And I think what everybody needs to remember is we don't operate this business on a quarter-to-quarter basis. We operate the business for the success over the long term, and there are some things that we're spending on that will absolutely help us in the longer term.

是的。克雷格，我想我的想法有點不同。我認為與您相似，看，我們的競爭對手顯然在苦苦掙扎。我認為現在不是考慮我們的財務實力的時候，我們應該在 SG&A 上撤回一大堆。我們已經大大退縮了。但與此同時，正如我在開場白中所說，我們也希望確保我們繼續為未來建設。而且我認為每個人都需要記住的是，我們不是按季度運營這項業務的。從長遠來看，我們經營業務是為了取得成功，而且我們正在花錢做一些事情，從長遠來看絕對對我們有幫助。

Does it give us a headwind for EPS right now? Absolutely. But is it the right decision for the company long term? Absolutely. So again, I think, really, my thoughts around your question is we're going to continue to walk this fine line. We want to continue to build out the muscle. We want to continue to fund near-term efficiencies, which we will do. And we'll continue to manage the business with a long-term view versus just a quarter-to-quarter view.

它現在會給我們帶來 EPS 的逆風嗎？絕對地。但從長遠來看，這是正確的決定嗎？絕對地。所以，我想，真的，我對你的問題的想法是我們將繼續走這條很好的路線。我們想繼續鍛煉肌肉。我們希望繼續為短期效率提供資金，我們會這樣做。我們將繼續以長遠的眼光而不是季度對季度的眼光來管理業務。

And maybe just to follow up. I mean, obviously, the stock is under significant pressure. It feels like you have the long-term philosophy, but not enough shareholders are on board with it. Is there something you can do to improve the messaging or the guidance provided to maybe reduce the amount of surprise with which your results are met?

也許只是為了跟進。我的意思是，很明顯，股票承受著巨大的壓力。感覺你有長期的理念，但沒有足夠的股東支持它。您是否可以做些什麼來改進消息傳遞或提供的指導，以減少您的結果所帶來的驚喜？

Yes. Well, I think the surprise is coming from macro factors to Enrique's point, that we really -- those are things that you can't control. And so what you need to focus on is what you can control. And obviously, I think our long-term messaging is still more intact than ever. Yes, we've got some pain here in the short term. But guess what? We've seen pain before in the short term. We've seen -- if you look at market share, for example, which is a proxy for how I think success is going, if you look at market share, we've historically -- we've gained market shares.

是的。嗯，我認為令人驚訝的是宏觀因素對恩里克的觀點，我們真的 - 這些是你無法控制的事情。所以你需要關注的是你能控制的。顯然，我認為我們的長期信息傳遞比以往任何時候都更加完整。是的，短期內我們在這裡遇到了一些痛苦。但猜猜怎麼了？我們以前在短期內看到過痛苦。我們已經看到——例如，如果你看一下市場份額，它代表了我認為成功的方式，如果你看一下市場份額，我們從歷史上看——我們已經獲得了市場份額。

I mean even in the time where the '08, '09, we lost a little market share in the near term, but then we quickly got it back and then some more. Even if you look in the last few years, when you look back at like FY '20, when we started really rolling out our online capabilities, we saw a step-up in market share gains. Unfortunately, we went into COVID. We gave a little bit back. But the following year, we got that back plus more. Now we're in a recessionary period. So again, I think everybody just needs to kind of keep a perspective of what we're going after long term. And yes, the short term can be a little noisy, but the long-term message is still intact.

我的意思是，即使在 08 年、09 年的時候，我們在短期內也失去了一點市場份額，但我們很快就把它拿回來了，然後又多了一些。即使你回顧過去幾年，當你回顧 20 財年時，當我們開始真正推出我們的在線功能時，我們看到市場份額的增長。不幸的是，我們進入了 COVID。我們回饋了一點。但第二年，我們收回了這筆錢，而且還多了。現在我們正處於衰退期。因此，我認為每個人都需要對我們長期追求的目標保持一種看法。是的，短期可能有點吵，但長期信息仍然完好無損。

We'll take our next question from Mike Montani with Evercore.

我們將從 Evercore 的邁克·蒙塔尼 (Mike Montani) 那裡回答下一個問題。

Just wanted to ask a little bit more on the credit side for Jon. If you could give us some incremental color you had mentioned [2 to 2.5] is kind of normal for Tier 1. So what would the equivalent kind of loss ratio expectations be for Tier 2 and Tier 3 .

只是想為喬恩多問一點信用方面的問題。如果你能給我們一些你提到的 [2 到 2.5] 的增量顏色對於第 1 層來說是正常的。那麼對於第 2 層和第 3 層的同等損失率期望是多少。

And then by way of follow-up would be, can you give some incremental color around delinquency trends and roll rates if possible at all, by tier would be very helpful.

然後通過後續行動，如果可能的話，你能否在拖欠趨勢和滾動率方面提供一些增量顏色，按層級將非常有幫助。

Sure. Yes, right on -- thanks for the question. The 2% to 2.5% is again our targeted range. I think we've done a great job staying within there. We've been in the Tier 3 business for -- since 2014. I think we've historically quoted it's basically 1% of our receivables initially. It's not 2% and obviously substantially higher loss rates. I think we've put often 10% of our losses when it was 1%. So you're seeing maybe a 10x, tenfold loss rate difference there in the Tier 3. Tier 2 is somewhere in between. It depends on where we choose to play there. There's obviously a wide spectrum. So hopefully, that gives you some color on how to expect losses provisioning whatever around the different buckets. .

當然。是的，好的——謝謝你的提問。 2% 至 2.5% 再次成為我們的目標範圍。我認為我們呆在那裡做得很好。自 2014 年以來，我們一直從事 Tier 3 業務。我認為我們從歷史上看，最初報價基本上是我們應收賬款的 1%。這不是 2%，而且顯然損失率要高得多。我認為我們經常將損失的 10% 投入 1%。因此，您可能會看到第 3 層的損失率差異是 10 倍、10 倍。第 2 層介於兩者之間。這取決於我們選擇在哪裡玩。顯然有一個廣泛的範圍。因此，希望這能為您提供一些關於如何預期不同桶周圍的損失準備的顏色。 .

Overall, macro factors and delinquencies and losses impacting our portfolio. I think it's very clear delinquencies are on the rise in the industry. There's no doubt. You can see that within our ABS deals. We've mentioned that historically, there's certainly seeing pressure in the consumer. I think we've done a really, really strong job at working with that consumer. And while they might go 30, 35 days past due, helping them find solutions such that it doesn't go into a charge-off status.

總體而言，影響我們投資組合的宏觀因素以及拖欠和損失。我認為很明顯，該行業的違約率正在上升。毫無疑問。您可以在我們的 ABS 交易中看到這一點。我們已經提到過，從歷史上看，消費者肯定會看到壓力。我認為我們在與消費者合作方面做得非常非常好。雖然他們可能會逾期 30、35 天，但可以幫助他們找到解決方案，使其不會進入註銷狀態。

So we continue to fight that good fight and work with our consumers. As Bill mentioned, obviously, monthly payments are up. I think we've done a nice job of being responsible on our lending to our consumers and helping them through it. And ultimately, we reserved accordingly expecting all of this. So I think we're in a good position from a reserve standpoint. We'll watch the credit environment and the consumer very carefully. And hopefully, that answers your questions.

因此，我們繼續與我們的消費者打好仗，並與他們合作。正如比爾提到的，顯然，每月付款增加了。我認為我們在向消費者提供貸款並幫助他們渡過難關方面做得很好。最終，我們相應地保留了對這一切的期待。所以我認為從儲備的角度來看我們處於有利地位。我們會非常仔細地觀察信用環境和消費者。希望這能回答您的問題。

Maybe can you just contrast a little bit the current delinquency experience you're seeing vis-a-vis what was happening in '07 and '08.

也許您可以將當前的拖欠經歷與 07 年和 08 年發生的事情進行一些對比。

Sure. Yes. I think what you're seeing historically is, I would say, in '07 and '08, you absolutely saw an impact across the entire credit spectrum substantially. I think what we've identified is we're seeing a little more pressure on maybe the lower credit consumer the Tier 3 into the Tier 2, maybe even the lower side of our Tier 1 space. So I see that definitely different. And again, I think that we're seeing delinquency pressure that hint of a challenge for the consumer but it really is not manifesting itself into loss.

當然。是的。我想你從歷史上看到的是，我想說，在 07 年和 08 年，你絕對看到了對整個信用範圍的重大影響。我認為我們已經確定的是，我們看到信貸較低的消費者可能面臨更大的壓力，即第 3 層進入第 2 層，甚至可能是我們第 1 層空間的較低端。所以我認為這絕對不同。再一次，我認為我們看到拖欠壓力暗示消費者面臨挑戰，但它實際上並沒有表現為損失。

Again, we're going to watch it carefully, and we'll see what happens. But you absolutely saw more of an impact across the credit spectrum and into the loss side in '08, '09. And again, I think that's a very different environment. We can all agree with that. The labor pressures back then versus now income for the workers. So we'll see where it translates. But I think those are the fundamental differences we've seen.

同樣，我們將仔細觀察它，看看會發生什麼。但在 08 年、09 年，你絕對看到了整個信貸範圍和損失方面的更多影響。再一次，我認為這是一個非常不同的環境。我們都同意這一點。當時的勞動力壓力與現在工人的收入相比。所以我們會看看它在哪裡翻譯。但我認為這些是我們所看到的根本差異。

We'll take our next question from Chris Bottiglieri with BNP.

我們將接受 BNP 的 Chris Bottiglieri 的下一個問題。

I wanted to talk about your path to your target SG&A to gross. It sounds like it's gross profit dependent to some level, but some of the gross profit levers like service and used volumes I think are out of your control. I think it's probably fair to say. The wholesale took a pretty big step down this quarter, but you've driven significant improvement there. So I guess my point is like where do you see the gross profit improvement coming from? Is there any reason I think that wholesale could rebound imminently?

我想談談您實現目標 SG&A 到毛額的路徑。這聽起來像是在某種程度上取決於毛利，但我認為一些毛利槓桿，如服務和使用量，是你無法控制的。我認為這可能是公平的說法。本季度批發量下降了一大步，但你在那裡推動了顯著改善。所以我想我的觀點是，您認為毛利潤的改善來自哪裡？我有什麼理由認為批發可能會立即反彈？

I think to Enrique's point earlier, it is a 2-piece equation we're controlling the expense side, the gross profit. We're going to need the business to come back. We're going to need it to come back some. I think wholesale gross profit, obviously, we made some good improvement there. Retail. Actually, wholesale and retail GPUs, I think, are both strong now. It's about getting some of the volume back. I think wholesale, I'm hopeful we can grow that a little bit more.

我認為恩里克之前的觀點是，我們控制費用方面的毛利是一個兩部分的方程式。我們需要業務恢復。我們將需要它回來一些。我認為批發毛利，顯然，我們在那裡取得了一些很好的改善。零售。實際上，我認為批發和零售 GPU 現在都很強勁。這是關於恢復一些音量。我認為批發，我希望我們能再增長一點。

Like I said, we did some things this quarter that probably slowed that down a little bit. But I think that's where it's going to be dependent. That's going to -- that will carry some weight.

就像我說的，本季度我們做了一些事情，可能會稍微放慢速度。但我認為這就是它要依賴的地方。這將 - 這將帶來一些影響。

Got you. Okay. Then a question on cash quickly. The penetration is up a ton despite like a pretty large rate hike. I'd imagine like you've been more in terms of quicker to [res rates the] bring your own financing jumped a bit too as well in Tier 2 and Tier 3 decline. You're also adding new partners on to the Tier 2, Tier 3 network, if I heard that correctly. So can you talk about what you're seeing in an aggregate -- are the Tier 2 and Tier 3 tightening credit at the margin? Does your new instant appraisal tool that you add, and it sounds like it includes the partners more? Will that help drive penetration of Tier 2, 3? Just any thoughts there would be helpful.

明白了好的。然後是關於現金的問題。儘管加息幅度很大，但滲透率還是上升了很多。我想像你在更快地 [res rates the] 方面做得更多一樣，在第 2 層和第 3 層下降時，你自己的融資也有所增加。如果我沒聽錯的話，您還將在第 2 層、第 3 層網絡中添加新的合作夥伴。那麼，您能談談您總體上看到的情況嗎——2 級和 3 級是否在邊際收緊信貸？您添加的新即時評估工具是否聽起來包含更多合作夥伴？這會有助於推動第 2 層、第 3 層的滲透嗎？任何想法都會有所幫助。

Yes. All right. Let me take them sequentially here. So just to remark on overall penetration. Yes, as we mentioned in the prepared remarks, CAF penetration is up in tandem with actually us raising rates. I think that's something we're really pleased about. We know that generally, you're going to lag the market. Again, we're competing with credit unions at the higher end, but I think we've done a fantastic job at raising rates 40 basis points sequentially, 150 basis points year-over-year, and still capture that penetration. So we're pleased with that.

是的。好的。讓我在這裡依次介紹它們。所以只是評論整體滲透率。是的，正如我們在準備好的評論中提到的，CAF 滲透率與實際我們加息同步上升。我認為這是我們非常高興的事情。我們知道，一般來說，你會落後於市場。同樣，我們正在與更高端的信用合作社競爭，但我認為我們在連續加息 40 個基點、同比加息 150 個基點方面做得非常出色，而且仍然保持了這種滲透率。所以我們對此感到滿意。

You see the Tier 2 penetration down from last year and the Tier 3 penetration down. I think that's a combination of 2 things. You absolutely see the consumer challenge there, as Bill mentioned, you're still seeing affordability issue there. But yes, absolutely, as we mentioned, instant lenders are being very -- what they need to do to operate independently and pull back where they need to. And I think there's the benefit of our platform. You've got a number of lenders that are going to work together to figure out what's best for them, but collectively provides a good credit offer in the long run.

你會看到二級滲透率比去年下降，三級滲透率下降。我認為這是兩件事的結合。正如比爾提到的那樣，您絕對會看到那裡的消費者挑戰，您仍然會看到那裡的負擔能力問題。但是，是的，絕對，正如我們提到的，即時貸方非常 - 他們需要做的是獨立運作並撤回他們需要的地方。我認為我們的平台有好處。你有許多貸款人將共同努力找出最適合他們的東西，但從長遠來看共同提供良好的信貸。

So I think that's -- you definitely see pullback there. Chris, last part of your question, I think you mentioned instant -- not instant appraisal tool, but our pre-qual tool, just to clarify there, we mentioned that we're continuing to add lenders on to that tool. Again, we think it's a best-in-class tool. It requires a lot of nimbleness from our lenders. They're all coming on board. Are we seeing engagement there? Yes, I don't know that that's necessarily driving a ton into the penetration story, albeit that tool does bring a better credit quality consumer to the application process. But -- so does that answer your questions? What else have I missed?

所以我認為那是——你肯定會看到回調。克里斯，你問題的最後一部分，我想你提到了即時——不是即時評估工具，而是我們的預審工具，只是為了澄清一下，我們提到我們將繼續在該工具上添加貸方。同樣，我們認為它是一流的工具。這需要我們的貸方非常靈活。他們都上船了。我們在那裡看到訂婚了嗎？是的，我不知道這是否一定會推動滲透故事，儘管該工具確實為申請流程帶來了更好的信用質量消費者。但是——這是否回答了您的問題？我還錯過了什麼？

Nothing. You got my laundry list and thanks for correcting my misspoken. That's right there (inaudible) sorry, I said it again, the financing penetration tool.

沒有什麼。你拿到了我的洗衣清單，謝謝你糾正我說錯的話。就在那裡（聽不清）對不起，我又說了一遍，融資滲透工具。

We'll take our next question from Chris Pierce with Needham.

我們將與 Needham 一起接受 Chris Pierce 的下一個問題。

I just wanted to kind of get some color around. You talked about competitors acting aggressively to preference units versus price where you guys kind of do the opposite. Is that positive because it means the industry is moving back to normal? Or is it a short-term negative because they're going to have fresher inventory that's going to lower your unit numbers. I'm just kind of wondering how to think about that and how that's kind of trended in the past. You've talked about seeing this before.

我只是想有點顏色。你談到了競爭對手對偏好單位和價格採取積極行動，而你們卻恰恰相反。這是積極的，因為這意味著該行業正在恢復正常嗎？或者這是一個短期的負面影響，因為他們會有更新鮮的庫存，這會降低你的單位數量。我只是想知道如何考慮這一點以及過去的趨勢如何。你以前說過看到這個。

Yes. Yes, Chris. So I think what you're saying is there's competitors out there that just aren't -- weren't moving any inventory and depreciation has been very steep. And so what they're doing is they're trying to move some of that inventory. We've seen this in the past. In a lot of cases, it's not sustainable over the long term because you're just not making the money that you need to, but you're trying to get units moved.

是的。是的，克里斯。所以我認為你所說的是那裡的競爭對手 - 沒有移動任何庫存並且折舊非常陡峭。所以他們正在做的是他們試圖轉移一些庫存。我們過去見過這種情況。在很多情況下，從長遠來看，這是不可持續的，因為你只是沒有賺到你需要的錢，但你正試圖讓單位搬走。

So it's, again, the reason why we did the expensive price test. We wanted to see what the elastic. And we did price test both up and down. So we did price test down. We also did price tests up just to kind of better understand it, which again, just gives us confidence that we made the right decision from a profitability standpoint.

因此，這又是我們進行昂貴價格測試的原因。我們想看看有什麼彈性。我們做了上下價格測試。所以我們做了價格測試。我們還進行了價格測試，只是為了更好地理解它，這再次讓我們相信，從盈利能力的角度來看，我們做出了正確的決定。

And we'll take our final question from David Whiston with Morningstar.

我們將與晨星一起接受 David Whiston 的最後一個問題。

It looks like you had a really great free cash flow generation quarter from an inventory reduction. And I'm just curious, I guess, one, can you -- how much longer can you reduce your inventory to get that free cash flow benefit you still have adequate vehicle inventory to sell? And then you paid off the revolver with some of that free cash flow. Do you also want to pay off that June '24 term loan to get some more balance sheet health and would you have that cash on hand?

看起來你從庫存減少中獲得了一個非常好的自由現金流產生季度。我只是好奇，我想，一個，你能——你還能減少庫存多長時間才能獲得自由現金流收益，你仍然有足夠的車輛庫存可以出售？然後你用一些自由現金流還清了左輪手槍。您是否還想還清 6 月 24 日的定期貸款以獲得更多的資產負債表健康，您手頭有現金嗎？

Yes. I think in this kind of environment, I think having some cash on hand isn't a bad thing. And we absolutely use the really effective management of inventory. Like Bill talked about, we decreased our overall inventory year-over-year, but we actually increased our sellable inventory. So that's some impressive work by the teams to work through our [WIP] And so that was really good news. We used that cash basically as you mentioned, to pay down the revolver this quarter, take it down to 0. We have no tap on our revolver, and at the same time, sit on some cash.

是的。我認為在這種環境下，手頭有一些現金並不是壞事。我們絕對使用真正有效的庫存管理。正如 Bill 所說，我們的整體庫存同比減少，但實際上我們增加了可售庫存。所以這是團隊為完成我們的 [WIP] 所做的一些令人印象深刻的工作，所以這真是個好消息。我們基本上按照您提到的那樣使用現金，以支付本季度的左輪手槍，將其降至 0。我們沒有使用左輪手槍，同時坐擁一些現金。

I just think, David, in this kind of environment, it's not a bad thing to have some cash as well. So it gives us ultimately the flexibility to manage through this kind of environment. And we have a really strong balance sheet and proud of it. And we have flexibility that others don't have in the industry. And I think that puts us in a position of strength.

我只是想，大衛，在這種環境下，有一些現金也不是壞事。因此，它最終為我們提供了管理這種環境的靈活性。我們擁有非常強大的資產負債表並為此感到自豪。我們擁有業內其他人所沒有的靈活性。我認為這使我們處於優勢地位。

And somewhat related to the buyback pause, I do understand wanting to be prudent, but should we interpret this to mean you guys are less optimistic about maybe the short to midterm than you were 3 months ago?

在某種程度上與回購暫停有關，我確實理解要謹慎，但我們是否應該將此解釋為你們對中短期的樂觀程度可能低於 3 個月前？

Well, it's important that we run a conservative balance sheet in this kind of environment. And as I mentioned in my prepared remarks, we do look at our net leverage ratio in terms of something to manage too carefully to make sure we have ultimate flexibility when it comes to having funds and managing CAF. We do have a very large captive finance organization, and that's just a key consideration that goes into it.

那麼，重要的是我們在這種環境下運行保守的資產負債表。正如我在準備好的發言中提到的那樣，我們確實在考慮我們的淨槓桿率時過於謹慎地管理，以確保我們在擁有資金和管理 CAF 方面具有最大的靈活性。我們確實有一個非常大的專屬金融組織，這只是其中的一個關鍵考慮因素。

So I think until the business kind of improves and just as importantly, the macro backdrop improves, I expect that we will pause the share buyback. That being said, we remain fully committed to the share repurchase program, and we'll get back into it at the appropriate time when things improve and the outlook improves.

所以我認為，在業務有所改善之前，同樣重要的是，宏觀背景有所改善，我預計我們將暫停股票回購。話雖如此，我們仍然完全致力於股票回購計劃，我們將在情況好轉和前景改善的適當時間重新投入使用。

Yes, David, it's less about our views have changed on, oh, things are going to get worse. It's just more about the uncertainty.

是的，大衛，這不是我們的觀點發生了變化，哦，事情會變得更糟。這只是更多的不確定性。

Yes, I hear you. Hopefully, it's not too long to pause. I think your stock is very attractive here. .

是的，我聽到了。希望暫停時間不會太長。我認為你的股票在這裡很有吸引力。 .

Great. We don't have any further questions at this time. I'll hand the call back over to Bill for any closing remarks.

偉大的。我們目前沒有任何進一步的問題。我會將電話轉回給比爾，聽取任何結束語。

Thank you, Ashley. Well, listen, thanks, everyone, for joining the call today and for your questions. As I said multiple times today, we believe we're well positioned to navigate this environment. And I do think we'll emerge an even stronger company. I want to thank again our associates for everything they're doing and their commitment to each other and the customer and the communities and the environment. And I want to wish you all a happy holiday season, and we look forward to talking again next quarter. Thank you.

謝謝你，艾希禮。好吧，聽著，謝謝大家今天加入電話會議並提出您的問題。正如我今天多次說過的那樣，我們相信我們已經做好了應對這種環境的準備。我確實認為我們會成為一家更強大的公司。我想再次感謝我們的員工所做的一切，感謝他們對彼此、客戶、社區和環境的承諾。我想祝大家假期愉快，我們期待下個季度再次交談。謝謝你。

Thank you. Ladies and gentlemen, that concludes Third Quarter Fiscal Year 2023 CarMax Earnings Release Conference Call. You may now disconnect.

謝謝你。女士們，先生們，2023 財年第三季度 CarMax 收益發布電話會議到此結束。您現在可以斷開連接。