Carvana Co. ( NYSE: CVNA ) fell in postmarket trading on Thursday after missing estimates with its Q4 earnings report.
The auto retailer said it made proactive choice to more aggressively position the business for lower targeted retail unit volumes in the first half of 2023.
That decision resulted in significant reductions in inventory in Q4, lower advertising expenses reductions, a reduction in the work force in November and the prioritization of other profitability initiatives with the goal of increasing operating efficiency.
CVNA saw declines in revenue, retail units sold, total gross profit per unit, and SG&A expenses in Q4 as part of the broad reset.
Shares of Carvana ( CVNA ) peeled off 5.05% in postmarket trading on Thursday.
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Carvana peels off 5% after posting wide-than-anticipated Q4 loss