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Mar 30, 2024
CarParts.com Q1 2024 Earnings Report
CarParts.com reported a decrease in net sales and a net loss for Q1 2024, while focusing on margin expansion and efficiency.
Key Takeaways
CarParts.com reported a 5% decrease in net sales to $166.3 million and a net loss of $6.5 million, or $0.11 per share, compared to a net income of $1.1 million, or $0.02 per share, in the year-ago quarter. The company is focusing on margin expansion and efficiency to improve profitability and Adjusted EBITDA for 2025 and 2026.
Net sales decreased by 5% year-over-year to $166.3 million due to softness in consumer demand and selling price compression.
Gross profit decreased to $53.9 million from $62.6 million, with gross margin at 32.4%.
Net loss was $6.5 million, or $0.11 per share, compared to net income of $1.1 million, or $0.02 per share, in the prior year.
Cash balance was $46.0 million with no revolver debt.
Forward Guidance
For the full year 2024, the company is targeting gross profit to remain within the previously forecasted range but adjusting the net sales and gross margin ranges.
Positive Outlook
- Targeting gross profit to remain within the previously forecasted range.
- Expects net sales in a range of $600 million to $625 million.
- Focus on gross margin improvement.
- Expects gross margin in a range of 33%, plus or minus 100 basis points.
- Gross margin improvement will partially offset the lower expected net sales.
Challenges Ahead
- Net sales guidance adjusted to $600 million to $625 million from $662 million to $688 million.
- Reflects focus on gross margin improvement.
- Previous gross margin guidance was 31%, plus or minus 100 basis points.
- Decrease in net sales was primarily driven by softness in consumer demand in certain parts and selling price compression.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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