(Reuters) -Carvana Co on Thursday reported a wider third-quarter loss as elevated car prices and higher interest rates dented demand for used cars.
The used-car retailer is facing a challenging macroeconomic environment, with global supply constraints and chip shortage causing car prices to remain high. It has taken a slew of cost control measures.
The company, famous for its car vending machines, decided to lay off around 2,500 employees, or 12% of its workforce, earlier this year, in a move to control costs as the macro environment turned gloomy.
Net loss for the Tempe, Arizona-based company widened to $2.67 per class A share in the quarter from $0.38 per class A share a year earlier, while gross profit per unit in the quarter fell to $3,870 from $4,672, a year earlier
Carvana’s revenue fell 3%% to $3.39 billion.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Shinjini Ganguli)
