Cazoo drops as CEO flags inflation woes, plans job cuts to save cash

Vroom

07/06/2022 15:14

** Shares of European online car retailer Cazoo  CZOO.N 
down 7% at $1.19 in early trading, reverses premarket gains 
    ** Stock on track for third straight day of losses
    ** Co plans to cut workforce by about 15% as it looks to
conserve cash  urn:newsml:reuters.com:*:nL4N2XU28F
    ** CEO Alex Chesterman called it a "perfect storm" for the
company amid rising inflation and interest rates as well as
supply-chain issues 
    ** Shares were up about 2.3% at $1.3 in low-volume premarket
trade
    ** CZOO says it will no longer offer its subscription
service to new subscribers from the end of June, given the
highly cash consumptive nature of the business model
    ** Expects sales to double to 70,000-80,000 units in 2022
from a year earlier
    ** Sees FY revenue between 1.4 bln pounds ($1.75 bln) and
1.5 bln pounds, two times higher than a year ago
    ** Cazoo operates a similar model to U.S. peers Carvana
 CVNA.O  and Vroom Inc  VRM.O 
    ** Stock down 80.3% YTD, including session's losses, and has
a market cap of ~$972 mln - Refinitiv data
    

 (Reporting by Eva Mathews in Bengaluru)
 ((Eva.Mathews@thomsonreuters.com;))