Carvana (NYSE: CVNA) shares rose Friday, as CEO Ernie Garcia said that over the next six months, the company will work to complete an estimated $1 billion in annual cost reduction. The online used car retailer reported a loss of $7.61 per share, greater than the forecasted loss of $2.28 per share, according to consensus estimates from Refinitiv. Carvana generated revenue of $2.84 billion, lower than the anticipated $3.1 billion.
Carvana reported retail units sold of 412,296 in the full year, a decrease of 3% YoY. In the fourth quarter, the company sold retail units numbering 86,977, a decrease of 23% YoY.
Garcia declared, “Ten years ago, we launched Carvana in Atlanta, Georgia. We were a passionate group of people who believed we could build something new in the world that we would be proud of. What we aimed to do was simple: to change the way people buy cars.
“In just 10 years, we have built an offering our customers love. We have brought that offering to over 300 markets across the country. We have bought and sold cars in a whole new way to millions of people. And we have laid the foundations to buy and sell to many millions more. Nothing worth doing is easy. Building Carvana has been no different. 2022 has reminded us of that again. It has undoubtedly been a challenging time, but like the challenges we have faced before, we are up to the task.
CVNA shares regressed $1.19, or 11.8%, to $8.89.
