CarMax third-quarter profit more than doubles on cost cuts

(Reuters) – Pre-owned car retailer CarMax (NYSE:) 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