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CarParts.com Reports Second Quarter 2024 Results
PRTSCarParts.com(PRTS) Prnewswire·2024-07-30 20:01

Core Insights - CarParts.com, Inc. reported a net sales decrease of 18% year-over-year, totaling 144.3millioninQ22024,primarilyduetopriceincreasesandreducedconsumerdemand[3][19][21]−Thecompanyaimstoachievesustainablegrowthwithatargetof6−8144.3 million in Q2 2024, primarily due to price increases and reduced consumer demand [3][19][21] - The company aims to achieve sustainable growth with a target of 6-8% Adjusted EBITDA margin and improved free cash flow generation in the medium term [3][45] - Adjusted EBITDA for Q2 2024 was (0.1) million, a significant decline from 6.3millioninthesamequarterlastyear[5][19]FinancialPerformance−GrossprofitforQ22024was6.3 million in the same quarter last year [5][19] Financial Performance - Gross profit for Q2 2024 was 48.4 million, down from 60.4million,withagrossmarginof33.560.4 million, with a gross margin of 33.5%, reflecting a 70 basis point decrease year-over-year but an improvement from 32.4% in Q1 2024 [19][21] - The net loss for the quarter was (8.7) million, or (0.15)pershare,comparedtoanetlossof(0.15) per share, compared to a net loss of (0.7) million, or (0.01)pershareintheprioryear[19][22]−Totaloperatingexpensesdecreasedto0.01) per share in the prior year [19][22] - Total operating expenses decreased to 57.1 million from 61.3millionyear−over−year[4]StrategicOutlook−Thecompanyisfocusingonenhancinggrossmarginsandtargetingmoreprofitablecustomersthroughupdatedpricingandmarketingstrategies[20][45]−Forthefullyear2024,CarParts.comexpectsnetsalestobeintherangeof61.3 million year-over-year [4] Strategic Outlook - The company is focusing on enhancing gross margins and targeting more profitable customers through updated pricing and marketing strategies [20][45] - For the full year 2024, CarParts.com expects net sales to be in the range of 600 million to 625million,withagrossmargintargetofapproximately33625 million, with a gross margin target of approximately 33% [46] - The CEO expressed confidence in the company's roadmap and opportunities within the 400 billion automotive aftermarket market [45]