...A. Highlights: A challenging qtr. 1. a. There were a number of impacts from the business, some internal and some external, that combined to negatively impact financial results. b. Co. views these impacts as transitory setbacks. B. Impacts to Results: There were three primary drivers of results. 1. First, operational constraints that most severely impacted inspection centers and logistics network. a. These began with Omicron, were exacerbated by winter storms and path to recovery has been slowed by inspection center, logistics network and inventory growth causing CVNA to produce and move more inventory to newly-opened IRCs that are further away from avg. customers leading to additional network complexity. i. ii. These effects had negative impact on sales volumes and retail GPU. b. Second, industry-wide impacts. Affordability and general consumer sentiment combined to drive fewer industry-wide sales than prior periods. i. ii. While Co. continues to rapidly grow market share throughout qtr.,...
