CarMax 2003 Annual Report Download - page 17

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CARMAX 2003 15
Defensible Competitive Advantage
■CarMax is fortunate to have no similar-format challenger at present.
■We are free to select the lowest risk, highest return market opportunities
for growth.
●Through fiscal 2006, we are expanding primarily in mid-sized markets
and adding satellite superstores in existing markets.These are the
markets where we’ve historically seen the fastest store ramp-ups and
quickest profitability.
●As we grow, we are learning more about trade area patterns, storing density
and additional market share opportunity.This will help us optimize our
storing as we enter new multi-store markets beyond fiscal 2006.
■CarMax has a ten-year development advantage over any challenger who
decides to copy our business. Building an organization, developing specialized
processes and systems, refining execution…all take time.
■CarMax intends to stay ahead of any potential competition through relentless
attention to people, process and systems development.
Outlook
■Over the next several years, we believe we can achieve comparable store used
unit growth in the range of 5% to 9% per year.
■In fiscal 2004, we expect comparable store used unit growth of 5% to 9%,
and, as we continue to absorb the incremental expense of being a separate
company, we expect earnings per share to be in the range of $1.00 to $1.10.