CarParts.com, Inc. reported net sales of $144.8 million for the third quarter of 2024, marking a 13% decrease from the prior year. This decline was primarily attributed to deliberate price increases aimed at higher-value customers, a challenging consumer environment, and one-time impacts from the Crowd Strike issue and hurricanes Helene and Milton.
The company's gross profit for the quarter was $51.0 million, with the gross margin improving by 230 basis points year-over-year to 35.2%. Despite this margin expansion, CarParts.com recorded a net loss of $10.0 million and an Adjusted EBITDA loss of $1.2 million for the quarter.
Management highlighted several strategic initiatives, including the re-platforming of carparts.com onto a cloud-based infrastructure, a new partnership with SimpleTire for tire sales, and the launch of shipping and product protection offerings. The company also announced the launch of its eBay store in Canada and a pilot program with Amazon for private label parts, alongside growth in OE premium and European brands.
For the full year 2024, CarParts.com narrowed and lowered its net revenue guidance by $5 million to a range of $595 million to $600 million due to the unexpected impact of hurricanes. However, the company narrowed its expected gross margin guidance to the high end of the range, from 32%-34% to 33%-34%.
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