CarParts.com Reports Second Quarter 2024 Results

CarParts.com, Inc., a leading eCommerce provider of automotive parts and accessories, has released its financial results for the second quarter ended June 29, 2024. The company, headquartered in Torrance, California, continues to position itself as a premier destination for vehicle repair and maintenance needs.

Financial Highlights

For the second quarter of 2024, CarParts.com reported a net sales decrease to $144.3 million, down 18% from the year-ago quarter. The gross profit was $48.4 million, with a gross margin of 33.5%, compared to $60.4 million and a gross margin of 34.2% in the same period last year. The company experienced a net loss of ($8.7) million, or ($0.15) per share, compared to a net loss of ($0.7) million, or ($0.01) per share, in the year-ago quarter. Adjusted EBITDA was ($0.1) million, down from $6.3 million in the previous year.

Business and Operational Highlights

CarParts.com saw significant progress in gross margin and efficiencies, with product margins at 54.0%, up 210 basis points from Q1. The company also reported total cumulative mobile app downloads of 450,000, more than double the number from the beginning of the year. The decrease in net sales was primarily driven by deliberate price increases to drive gross margin expansion combined with softness in consumer demand.

Strategic Initiatives and Corporate Developments

The company maintained a cash balance of $34.1 million with no revolver debt as of June 29, 2024. This is a decrease from the $51.0 million cash balance at the prior fiscal year-end December 30, 2023. CarParts.com is focused on achieving sustainable and significantly positive Adjusted EBITDA next year while working towards a 6-8% Adjusted EBITDA margin and enhanced free cash flow generation in the medium term.

Management's Perspective

CEO David Meniane emphasized the company's focus on financial discipline and profitability. He highlighted the progress made in gross margin and efficiencies, reinforcing confidence in the company's roadmap and opportunity in the $400 billion automotive aftermarket market. The company updated its pricing and marketing acquisition strategies to target more profitable customers and generate higher gross margins.

Future Outlook

For the full year 2024, CarParts.com is targeting net sales at the low end in the range of $600 million to $625 million and gross margin to be 33%, plus or minus 100 basis points. The company expects Q3 to show sequentially higher margins.

SEC Filing: CarParts.com, Inc. [ PRTS ] - 8-K - Jul. 30, 2024