CarParts.com Reports Fiscal Year 2024 Results

Core Insights - CarParts.com, Inc. reported a significant decline in net sales for fiscal year 2024, totaling $588.8 million, down 13$675.7 million in fiscal year 2023, primarily due to soft consumer demand and pressures in specific product categories [5][9] - The company experienced a net loss of $40.6 million in fiscal year 2024, compared to a net loss of$8.2 million in fiscal year 2023, indicating a worsening financial performance [7][26] - Management emphasized a strategic focus on improving gross and net margins, enhancing operational efficiency, and achieving sustainable growth through various initiatives [3][4] Fiscal Year 2024 Financial Results - Net sales decreased to $588.8 million from$675.7 million, a decline of 13% [5][9] - Gross profit was $196.7 million, down from$229.4 million, with a gross margin of 33.4%, a decrease of 50 basis points [5][10] - Total operating expenses were $237.4 million, slightly down from$239.3 million, but operating expenses as a percentage of net sales increased to 40.3% from 35.4% [6][26] - Adjusted EBITDA for the year was ($7.1) million, a significant drop from$19.7 million in the previous year [7][9] Fourth Quarter 2024 Financial Results - Net sales for the fourth quarter were $133.5 million, down 15$43.4 million, compared to $51.6 million, with a gross margin of 32.5$15.4) million, compared to a net loss of ($6.1) million in the year-ago quarter [10][9] - Adjusted EBITDA for the fourth quarter was ($6.8) million, down from $1.0 million in the previous year [11][9] Strategic Initiatives and Outlook - The company is focusing on non-paid marketing initiatives, enhancing site conversion, and expanding product assortment to address economic challenges faced by lower-income consumers [4][3] - CarParts.com has launched a new website with AI-based search solutions and machine learning product recommendations, along with a paid membership program, CarParts+, which includes roadside assistance [9][10] - The company is currently evaluating various strategic alternatives and has not provided guidance for 2025 [12]