CarMax third-quarter profit more than doubles on cost cuts (updated)

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21/12/2023 11:58

(Adds shares in paragraph 2, background in paragraphs 3 and 4)
       Dec 21 (Reuters) - Pre-owned car retailer CarMax  KMX.N 
on Thursday posted a higher third-quarter profit after
previously implemented cost cuts helped it offset headwinds from
lower demand.
    Shares of the company rose 1.8% in premarket trade.
        The company last year paused some hiring and reduced its
SG&A costs over the year as it looked to offset waning demand
from the sale of used vehicles.
  
        Demand for used vehicles had risen in the pandemic but
fell significantly over the past few quarters after consumers
were faced with higher interest rates.  
    The company posted a quarterly profit of $82 million, or 52
cents per share, for the quarter ended Nov. 30, compared with
$37.6 million, or 24 cents per share, a year ago

 (Reporting by Nathan Gomes in Bengaluru; Editing by Maju
Samuel)
 ((Nathan.Gomes@thomsonreuters.com;))