CarParts.com, Inc. reported a net sales decline of 12.9% for the fiscal year ending December 28, 2024, totaling $588.8 million, down from $675.7 million in the previous year. The company also recorded a net loss of $40.6 million, a significant increase from the $8.2 million loss reported in fiscal year 2023. The decrease in sales was attributed to a challenging consumer environment and a strategic re-pricing initiative aimed at attracting higher-value customers. Gross profit fell by 14.2% to $196.7 million, with gross margin slightly decreasing to 33.4% from 33.9% in the prior year, primarily due to unfavorable freight costs.
In terms of operational developments, CarParts.com has focused on enhancing its eCommerce capabilities, including the launch of a mobile app that has been downloaded over 750,000 times since its introduction in the summer of 2023. The company has also expanded its fulfillment operations, opening a new 200,000 square foot facility in Las Vegas, which is expected to improve logistics and reduce transportation costs. As of December 28, 2024, the company employed 1,466 individuals, with 948 based in the U.S. and 518 in the Philippines, reflecting a commitment to maintaining a robust workforce to support its operations.
The company’s strategic focus includes optimizing supply chain management and investing in technology to enhance customer experience. CarParts.com aims to capture a larger market share by expanding its product offerings and improving its marketing strategies, which have shifted towards building direct customer relationships and reducing reliance on performance marketing channels. The company continues to face intense competition from both online and offline retailers, including major players like Amazon and traditional auto parts stores.
Looking ahead, CarParts.com anticipates that the ongoing expansion of the U.S. vehicle fleet and the increasing average age of vehicles will drive demand for aftermarket parts. However, the company acknowledges potential risks, including economic conditions that could adversely affect consumer spending on auto parts. Management remains cautious about future performance, emphasizing the need for continued adaptation to market conditions and consumer behavior shifts. The company believes its current cash reserves and available credit will be sufficient to support operations over the next twelve months, although it may need to seek additional financing if conditions do not improve.
About CarParts.com, Inc.
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