TORRANCE, CA — CarParts.com, Inc. (NASDAQ: PRTS), one of the leading eCommerce providers of automotive parts and accessories, and a one-stop shop for vehicle repair and maintenance needs, is reporting results for the second quarter ended July 1, 2023.
Second Quarter 2023 Summary vs. Year-Ago Quarter
- Net sales increased to $177.0 million, up slightly year-over-year and up 12% on a two-year stack.
- Gross profit decreased 2% to $60.4 million, with gross margin of 34.2%.
- Net loss was ($0.7) million, compared to net income of $4.1 million.
- Adjusted EBITDA of $6.3 million vs. $8.3 million.
- Cash of $79.2 million and no revolver debt.
- Repurchased 250,000 shares for $1.05 million during the quarter.
- Launched mobile app on both iOS and Android.
Management Commentary
“Q2 2023 marks our 14th consecutive quarter of year-over-year growth and the highest sales level for any quarter in our company’s history. The $79 million in cash on our balance sheet at the end of the quarter is a testament to the strong unit economics and cash generation capabilities of our business.” said David Meniane, CEO of CarParts.com. “For the remainder of the year, we will be executing on six key strategic pillars: eCommerce fundamentals, digital transformation, assortment and catalog, marketing and customer experience, supply chain and logistics, and innovation.”
“CarParts.com has never been better positioned than it is today. As we continue to build a world class organization, focused on our strategic pillars, we believe we are creating a foundation that is making our company significantly more valuable and will benefit our stakeholders for years to come.”
Second Quarter 2023 Financial Results
Net sales in the second quarter of 2023 were $177.0 million, up slightly from the year-ago quarter.
Gross profit in the second quarter decreased 2% to $60.4 million compared to $61.9 million in the year-ago quarter, with gross margin decreasing 90 basis points to 34.2%, primarily driven by higher outbound transportation costs and product mix.
Total operating expenses in the second quarter were $61.3 million compared to $57.6 million in the year-ago quarter. The increase was primarily driven by investments in our business, in addition to the absence of a prior period reversal in stock compensation expense from the departure of a key executive, combined with higher advertising expense, partially offset by a decrease in fulfillment expense primarily due to an improvement in distribution center costs.
Net loss in the second quarter was ($0.7) million compared to net income of $4.1 million in the year-ago quarter.
Adjusted EBITDA in the second quarter was $6.3 million compared to $8.3 million in the year-ago quarter.
On July 1, 2023, the Company had a cash balance of $79.2 million and no revolver debt, compared to no revolver debt and a $18.8 million cash balance at prior fiscal year-end December 31, 2022.
About CarParts.com, Inc.
CarParts.com is the leading destination for vehicle care, maintenance, and accessories. Our easy-to-use, mobile-friendly website and app allow drivers to access quality parts and services without the guesswork typically associated with car repair or the added expense of brick-and-mortar stores. Our company-operated fulfillment network allows us to quickly deliver the quality parts from top brands to our customers nationwide. At CarParts.com, our global team is dedicated to removing the friction from our customers’ vehicle care and Empowering Drivers Along Their Journey. CarParts.com is headquartered in Torrance, California.
