CarParts.com Begins Exploring Sale and Other Strategic Alternatives

Core Viewpoint - CarParts.com is exploring strategic alternatives, including a potential sale, after receiving inbound inquiries, with no set timeline for completion and no certainty of a strategic change [1][2] Company Performance - In the third quarter, CarParts.com reported a 13% decline in net sales year-over-year, totaling $144.8 million, alongside a net loss of$10 million [3] - The sales decrease was attributed to deliberate price increases aimed at higher value customers, gross margin expansion, and challenges in the consumer environment, as well as one-time impacts from external events [4] Strategic Initiatives - The company has invested significantly in building a vertically integrated supply chain and a nationwide fulfillment network to enhance its eCommerce experience and mobile app [3] - CarParts.com is undergoing a re-platforming process to improve performance and reduce development cycles, with expectations to capitalize on opportunities in the $400 billion auto parts market [5] User Engagement - The cumulative downloads of CarParts.com's mobile app have more than doubled to over 550,000 at the beginning of the year, indicating growing user engagement despite sales challenges [4]