Core Insights - CarParts.com reported a net sales decrease of 12% year-over-year for Q3 2025, totaling $127.8 million compared to $144.8 million in Q3 2024 [6][10] - The company closed a strategic investment of $35.7 million from A-Premium, ZongTeng Group, and CDH Investments to enhance operational efficiency and product range [2][3] - The CEO expressed confidence in the company's strategy to achieve long-term profitability and expects to be free cash flow positive by 2026 [5] Financial Performance - Gross profit for Q3 2025 was $42.3 million, down from $51.0 million in the same quarter last year, with a gross margin decrease of 210 basis points to 33.1% [7][10] - Total operating expenses decreased to $52.3 million from $60.9 million year-over-year, primarily due to reduced marketing and payroll costs [7][10] - The net loss for Q3 2025 was $10.9 million, compared to a net loss of $10.0 million in Q3 2024, with adjusted EBITDA of ($2.2) million versus ($1.2) million [8][10] Strategic Developments - The partnership with ZongTeng Group provides access to a global logistics network, enhancing fulfillment capabilities across the U.S. [2][3] - A-Premium's collaboration adds over 100,000 new SKUs, potentially increasing annual revenue from this partnership to over $100 million as integration progresses [3] - CDH Investments contributes strategic and operational expertise, supporting the company's growth initiatives [3] Operational Focus - The company is focusing on improving gross margin, managing variable costs, and enhancing operational efficiency to drive sustained free cash flow [4] - The management is committed to disciplined execution and profitable growth, aligning all business segments towards these goals [5] Cash Position - As of September 27, 2025, CarParts.com had a cash balance of $36.0 million and inventory valued at $94.3 million [9][10]

Core Points - CarParts.com, Inc. has rescheduled its third quarter 2025 conference call to November 10, 2025, at 2:00 p.m. Pacific Time [1] - The conference call will be hosted by CEO David Meniane and CFO Ryan Lockwood, and will be available via live audio webcast [2] - CarParts.com is a technology-led e-commerce company offering over 1 million automotive parts and accessories, with a focus on customer experience and fast shipping [3] Company Overview - CarParts.com has been operating for over 25 years and aims to provide a seamless shopping experience for vehicle maintenance and repair [3] - The company operates a portfolio of brands including CarParts Wholesale, JC Whitney, Garage-Pro, and Evan Fischer [3] - CarParts.com is headquartered in Torrance, California [4]

Financial Data and Key Metrics Changes - The company reported a 5.6% increase in comparable store sales for Q3 2025, with total sales increasing by $341 million [4][26] - Operating income increased by 9%, and diluted earnings per share rose by 12% [5] - The updated diluted earnings per share guidance is now in the range of $2.90 to $3.00, reflecting a year-over-year increase of 9% [13][14] - Free cash flow for the first nine months of 2025 was $1.2 billion, down from $1.7 billion in the same period in 2024 [28] Business Line Data and Key Metrics Changes - The professional business saw a comparable store sales increase of just over 10%, significantly contributing to overall sales growth [6][7] - DIY comparable store sales growth was in the low single digits, driven by average ticket benefits but partially offset by pressure on transaction counts [7][8] - Same-skew inflation during Q3 was just over 4%, impacting both professional and DIY segments [8] Market Data and Key Metrics Changes - The company updated its full-year comparable store sales guidance from 3%-4.5% to 4%-5% [10][11] - The effective tax rate for Q3 was 21.4%, slightly lower than the previous year's rate of 21.5% [26][28] Company Strategy and Development Direction - The company plans to open 225 to 235 net new stores in 2026, building on its growth in the U.S., Mexico, and Canada [23][50] - The focus remains on maintaining strong supplier relationships and managing risks associated with supplier health [19][60] - The company aims to provide exceptional service and industry-leading availability to continue gaining market share [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer spending due to economic uncertainty but noted that DIY consumers are still willing to invest in vehicle maintenance [9][12] - The company remains optimistic about its ability to navigate the current tariff environment and maintain competitive pricing [11][17] - Management highlighted the importance of customer service and product availability in retaining and growing market share [12][18] Other Important Information - The company opened 55 net new stores in Q3, bringing the year-to-date total to 160 [22] - Capital expenditures for the first nine months of 2025 were $900 million, with a revised full-year guidance of $1.1-$1.2 billion [24][25] Q&A Session All Questions and Answers Question: Regarding the 4% same-skew inflation, will there be any residuals in the next quarters? - Management indicated that there may still be a tailwind from same-skew inflation moving into Q4 and Q1, but most adjustments needed have been made [34][35] Question: What has been observed historically regarding price elasticity, particularly on the DIY side? - Historically, larger ticket jobs can be deferred during economic shocks, but the company remains confident in the overall strength of both professional and DIY segments [36][37] Question: Is the elasticity function getting worse, and why wouldn't comps be higher than expected inflation? - Management noted that various factors, including weather and consumer behavior, contribute to the cautious outlook for comps, but they remain optimistic about overall trends [42][46] Question: Can you discuss the potential for U.S. store growth and international expansion? - Management expressed confidence in U.S. store growth potential and highlighted Mexico and Canada as significant opportunities for future expansion [47][50] Question: Are there notable differences in geographic performance due to weather patterns? - Management reported no material differences in regional performance during Q3, aligning with internal expectations [56] Question: What is the company's exposure to the First Brands situation? - The company indicated that First Brands represents a small portion of COGs, and they have multiple sourcing strategies in place to mitigate risks [58][60]

Core Viewpoint - CarParts.com, Inc. will hold a conference call on November 11, 2025, to discuss its third-quarter financial results for the period ending September 27, 2025, with CEO David Meniane and CFO Ryan Lockwood hosting the call [1]. Group 1 - The conference call will take place at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) [1]. - Financial results will be reported in a press release prior to the conference call [1]. - The live webcast of the event can be accessed on the company's investor relations website [2]. Group 2 - CarParts.com, Inc. is a technology-led e-commerce company offering over 1 million automotive parts and accessories [3]. - The company has been operating for over 25 years and aims to provide a seamless, mobile-friendly shopping experience [3]. - CarParts.com operates a nationwide distribution network and offers a portfolio of private-label and marketplace brands [3].

Core Insights - CarParts.com, Inc. is participating in the 19th annual LD Micro Main Event from October 19-21, 2025, in San Diego, California, to connect with the investment community and showcase its innovations in the automotive aftermarket [1][4]. Company Overview - CarParts.com is a technology-led e-commerce company offering over 1 million quality automotive parts and accessories, operating for over 25 years [5]. - The company focuses on a customer-first approach, providing a seamless, mobile-friendly shopping experience through its website and app [5]. - CarParts.com operates a nationwide distribution network, ensuring fast shipping and experienced customer service to alleviate the stress of vehicle maintenance and repair [5]. - The company manages a portfolio of private-label and marketplace brands, including CarParts Wholesale, JC Whitney, Garage-Pro, and Evan Fischer [5]. Event Details - The LD Micro Main Event XIX is a significant gathering for small company investing, emphasizing the importance of community and connection within the investment sector [3]. - The event is described as a culmination of over 25 years of dedication to small company success, highlighting the commitment of LD Micro to support these businesses [3].

Core Insights - CarParts.com, Inc. has announced board transitions following a strategic investment from ZongTeng Group, A-Premium, and CDH Investments [1] - Henry Maier and James Barnes will step down from the Board of Directors effective October 7, 2025 [2] - Thomas Yunlong Man and Na "Mina" He have been designated as board observers by the strategic investors [3][4] - The Board will consist of six directors following these changes [6] Company Overview - CarParts.com is a technology-led e-commerce company offering over 1 million automotive parts and accessories [7] - The company has been operating for over 25 years and aims to provide a seamless shopping experience for vehicle maintenance and repair [7] - CarParts.com operates a nationwide distribution network and a portfolio of private-label and marketplace brands [7]

Shares of AutoZone Inc (NYSE:AZO) were last seen down 2.9% to trade at $3,990, after the company missed fiscal fourth-quarter earnings expectations. Revenue came in above estimates, though, as the automotive parts and accessories retailer also reported strong same-store sales growth.AZO is extending a pullback from its Sept. 11, all-time high of $4,388.11 as it gaps further below the 20-day moving average. The equity earlier slipped to its lowest level since mid-August, but still carries a 33.4% year-over-y ...

Financial Performance - Q4 FY2025 (GAAP) - Net sales increased by 0.6% to $6.243 billion compared to $6.205 billion in Q4 FY24[9] - Operating profit (EBIT) decreased by 7.8% to $1.196 billion from $1.297 billion[9] - Net income decreased by 7.2% to $837 million compared to $902 million[9] - Diluted EPS decreased by 5.6% to $48.71 from $51.58[9] Financial Performance - Q4 FY2025 (Adjusted) - Net sales increased by 6.9% to $6.243 billion compared to $5.840 billion in adjusted Q4 FY24[13] - Operating profit (EBIT) decreased by 1.1% to $1.196 billion from $1.210 billion[13] - Net income decreased by 0.5% to $837 million compared to $841 million[13] - Diluted EPS increased by 1.3% to $48.71 from $48.11[13] Financial Performance - FY2025 (GAAP) - Net sales increased by 2.4% to $18.939 billion compared to $18.490 billion in FY24[18] - Operating profit (EBIT) decreased by 4.7% to $3.610 billion from $3.789 billion[18] - Net income decreased by 6.2% to $2.498 billion compared to $2.662 billion[18] - Diluted EPS decreased by 3.1% to $144.87 from $149.55[18] Expansion and Stock Repurchase - The company repurchased $447 million of AutoZone stock during Q4 FY25[11] - The company repurchased $1.5 billion of AutoZone stock during FY25[20] - The company opened 304 net new stores in FY25, a 42.7% increase compared to the previous year[29]

Core Insights - CarParts.com, Inc. reported a net sales increase of 5% to $151.9 million for the second quarter of 2025 compared to $144.3 million in the same quarter last year, driven by higher consumer demand through its primary eCommerce sales channel [5][11] - The company is actively exploring strategic alternatives to maximize shareholder value, including a potential sale and strategic investments, with management expressing confidence that this process is nearing completion [3][9] - The company achieved positive Adjusted EBITDA in June 2025, indicating that strategic initiatives are beginning to yield tangible results, with expected annualized cost savings of approximately $10 million from investments in AI and automation [4][11] Financial Performance - Gross profit for the second quarter was $49.8 million, up from $48.4 million year-over-year, but gross margin decreased by 70 basis points to 32.8% due to product mix and tariffs [6][11] - Total operating expenses rose to $62.2 million from $57.1 million in the prior year, with operating expenses as a percentage of net sales increasing to 40.9% [7][11] - The net loss for the quarter was $12.7 million, compared to a net loss of $8.7 million in the same quarter last year, primarily due to lower gross margin and higher marketing expenses [8][11] Cash and Balance Sheet - As of June 28, 2025, the company had a cash balance of $19.8 million and a revolving loan balance of $10 million, compared to no revolver debt and a cash balance of $36.4 million at the end of the previous fiscal year [8][25] - Inventory stood at $94 million, reflecting an increase from $90.4 million at the end of the previous fiscal year [25] - Total assets decreased to $189.6 million from $210.6 million, while total liabilities increased slightly to $127.1 million [25][26] Market Position and Strategy - CarParts.com operates over 1 million quality automotive parts and accessories, positioning itself as a leading eCommerce provider in the automotive sector [13] - The company is focused on enhancing its fulfillment network and investing in technology to improve operational efficiency and customer experience [4][11] - The mobile app has achieved approximately 1 million cumulative downloads, indicating a growing digital presence [11]

Core Insights - Advance Auto Parts (AAP) is expected to report quarterly earnings of $0.59 per share, reflecting a year-over-year decline of 21.3% [1] - Anticipated revenues for the quarter are projected at $1.99 billion, which represents a decrease of 25.8% compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 0.5% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock [3] Key Metrics Forecast - Analysts forecast the total number of retail stores for AAP to be 4,293, down from 5,097 in the same quarter last year [5] - The number of stores opened is expected to remain at 9, consistent with the previous year [5] - The number of CARQUEST stores is projected to be 234, down from 292 year-over-year [5] - The number of AAP stores is estimated to be 4,060, compared to 4,484 in the same quarter last year [6] Market Performance - AAP shares have decreased by 5.6% over the past month, contrasting with a 2.7% increase in the Zacks S&P 500 composite [6] - AAP holds a Zacks Rank of 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]