CarParts.com, Inc. reported a decline in financial performance for the first quarter of 2025, with net sales totaling $147.4 million, down 11.4% from $166.3 million in the same period last year. The company experienced a net loss of $15.3 million, compared to a loss of $6.5 million in the prior year. This significant increase in losses was attributed to a challenging consumer environment and adverse weather conditions impacting sales. Gross profit also decreased by 12.2% to $47.3 million, resulting in a gross margin of 32.1%, a slight decline from 32.4% in the previous year.
In terms of operational metrics, CarParts.com reported an increase in total current assets, which rose to $149.2 million from $138.9 million at the end of the previous fiscal year. However, total liabilities also increased significantly, reaching $143.7 million compared to $125.4 million in December 2024. The company's employee headcount remained stable, with no significant changes reported. The company continues to focus on enhancing its eCommerce platform and expanding its product offerings, which includes a comprehensive selection of approximately 1.6 million SKUs.
Strategically, CarParts.com opened a new state-of-the-art fulfillment center in Las Vegas in June 2024, expanding its capacity to improve logistics and reduce transportation costs. This facility is expected to enhance customer service through expedited delivery. The company is also exploring strategic alternatives, which may include partnerships or acquisitions, to bolster its market position. However, the success of these initiatives remains uncertain, and the company has acknowledged the potential risks associated with its exploration of strategic alternatives.
Looking ahead, CarParts.com anticipates that its existing cash and cash equivalents, along with cash flows from operations and available debt financing, will be sufficient to meet operational needs for at least the next twelve months. The company is committed to maintaining financial discipline while investing in technology and expanding into new business lines. However, it remains cautious about the ongoing economic conditions and their potential impact on consumer demand for aftermarket auto parts. The company’s management has indicated that it will continue to monitor market trends and adjust its strategies accordingly to navigate the evolving landscape.
About CarParts.com, Inc.
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