(Reuters) – Carvana Co said on Wednesday it expects a smaller core loss in the current quarter due to a raft of cost-cut measures it implemented amid falling used-car sales, sending its shares up nearly 24% before the bell.
Carvana expects first-quarter core loss between $50 million and $100 million, down from a core loss of $348 million a year earlier.
The used-car retailer, known for its automated car vending machines, allows users to buy cars online and offers home deliveries, which made it popular during the COVID-19 pandemic when people were confined to their homes.
However, demand for used cars has cooled in recent months, as people cut back on discretionary expenses amid recession worries.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Vinay Dwivedi)
