Vroom exceeded Wall Street expectations for its second-quarter earnings. The retailer reported a $0.83 decrease per share and a loss of $115.1 million. However, earnings jumped 5.19%, and the company posted revenues of $475.44 million, missing the Zacks Consensus Estimate by 0.94%. This time last year, Vroom revenues were $761.89 million.
The retailer had a net loss of $115.1 million, less than the first-quarter loss of $310.5 million but more than the loss of $65.8 million a year ago. In the second quarter, the number of cars sold online by Vroom fell by approximately 50% to 9,233 vehicles. However, the profitability of online car sales jumped 34% to a record $3,629 per vehicle.
The company experienced a 45% decrease in eCommerce sales from the same period last year. The business spent $35 million less on operations, and liquidity totaled $533 million at the end of the quarter.
Vroom also reported Monday that as part of the business restructuring strategy unveiled in May, it eliminated 337 employees and sold much fewer automobiles in the second quarter.
Additionally, Vroom claimed that as part of this plan, it shut down other used-car-buying locations in Texas and offices in New York City and Detroit.
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