Carvanas losses deepen times 9
Car vana said on Thursday its net loss rose over nine-fold in the fourth quarter hurt by shrinking demand for pre-owned vehicles, sending its shares down 5% in extended trade. The debt-laden used car retailer has been struggling to sell car s it acquired at elevated rates last year when semiconductor shortages hampered supply of new car s. Car vana, known for its automated car vending machines, allowed users to buy used car s online and offered home deliveries, which made it popular during the COVID-19 pandemic when people were confined to their homes. However, demand of used car s has cooled following an improved availability of new car s and as people look for alternative means to commute in an attempt to trim expenses with a higher interest rates. The company reduced its inventory by 27% in the quarter, and said it would reduce inventory and advertising spend further in the first quarter as it looks to normalize its inventory size in a "high depreciation environment." Car vana posted a fourth-quarter net loss of $806 million, or $7.61 per class A share, up from a loss of $89 million, or $1.02 per class A share, a year earlier. The Tempe, Arizona-based company's revenue fell nearly 24% to $2.84 billion.
Source:autoblog.com