Carvana's first-quarter profit rises on used-car demand

April 29 (Reuters) - Carvana ‌reported a ​rise ​in first-quarter profit on Wednesday, as the online retailer benefited from sustained ‌demand for preowned vehicles.

Shares of the company rose ⁠about 10% in aftermarket trade.

Demand for preowned vehicles has ‌remained strong as the ‌average new vehicle price in the U.S. hovers around the $50,000 mark, forcing buyers to hunt ​for more affordable models.

The company's adjusted gross profit per unit fell by $58 in the ⁠first quarter from a year earlier, as it faced higher ​reconditioning costs and lower shipping fees.

Carvana said it had implemented a series of changes ​over the past few ‌months, including better labor training and AI-integrated internal tools to improve workforce ⁠allocation.

"So far in Q2, we are beginning to see the impact of these efforts," Carvana said.

Shares of ⁠the retailer, known for its towering vehicle vending machines, have ​risen 67% over the past 12 months.

The company reported a net income of $405 million for the quarter ended ‌March 31, compared with $373 million a year earlier.

Carvana reported a quarterly profit ‌per share of $1.69 based on 148 million ⁠Class A shares.

Quarterly revenue ‌climbed to $6.43 billion ​from $4.2 billion a year earlier.

(Reporting by Nathan Gomes in Bengaluru; Editing by Sriraj ‌Kalluvila)

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