CarParts.com, Inc. SEC 10-Q Report

CarParts.com, Inc., a leading online provider of automotive parts and accessories, has released its Form 10-Q report for the first quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the challenges and strategic initiatives undertaken during the period.

Financial Highlights

• Net sales: $147.378 million, a decrease of 11.4% compared to the first quarter of 2024, primarily driven by the continued challenging consumer environment and inclement weather.
• Gross profit: $47.347 million, a decrease of 12.2% compared to the same period in 2024, with a gross margin of 32.1%, down from 32.4% in the first quarter of 2024, primarily due to unfavorable freight costs.
• Loss from operations: $(15.146) million, compared to $(6.517) million in the first quarter of 2024, reflecting increased operating expenses.
• Net loss: $(15.283) million, compared to $(6.478) million in the first quarter of 2024, with a net loss per share of $(0.27), compared to $(0.11) in the first quarter of 2024.

Business Highlights

• Revenue Segments: The company's revenue is primarily derived from two main product categories: House Brands and Branded products. House Brands include Replacement Parts (63% of revenue) and Hard Parts (19% of revenue), while Branded products include Replacement Parts (2% of revenue) and Hard Parts (14% of revenue).
• Geographical Performance: The company operates primarily in the U.S. market, with offshore operations in the Philippines and sales in Canada. The impact of foreign currency on operations was not material.
• New Production Launches: In June 2024, the company opened a new state-of-the-art fulfillment center in Las Vegas, Nevada, expanding from 125,000 sq. ft. to over 200,000 sq. ft. This facility is expected to reduce last-mile transportation expenses to the West Coast and enhance customer service through expedited delivery.
• Future Outlook: The company is focused on optimizing supply chain management, upgrading logistics, investing in technology, and expanding into new business lines. It aims to enhance its fulfillment center footprint, capacity, and productivity, and is committed to maintaining financial discipline while evaluating investments based on their potential to drive profitability.

SEC Filing: CarParts.com, Inc. [ PRTS ] - 10-Q - May. 13, 2025