CarParts.com, Inc. Releases Q2 2024 10-Q Report Highlighting Financial and Operational Performance
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CarParts.com, Inc., a leading online provider of automotive parts and accessories, has released its Form 10-Q report for the second quarter of 2024. The report details the company's financial performance and operational highlights, providing insights into its revenue segments, geographical performance, new production initiatives, and future outlook.
Financial Highlights
- Net Sales: $144.27 million, a decrease of 18.5% compared to the second quarter of 2023 due to deliberate price increases and softness in consumer demand.
- Gross Profit: $48.39 million, a decrease of 19.9% compared to the same period in 2023, with a gross margin of 33.5%, down from 34.2% in the second quarter of 2023, primarily due to unfavorable freight costs.
- Loss from Operations: $(8.73) million, compared to a loss of $(0.84) million in the second quarter of 2023, reflecting increased operating expenses as a percentage of net sales.
- Net (Loss) Income: $(8.69) million, compared to a net loss of $(0.67) million in the second quarter of 2023, impacted by lower sales and gross profit.
- Basic Net (Loss) Income Per Share: $(0.15), compared to $(0.01) in the second quarter of 2023, reflecting the increased net loss.
Business Highlights
- Revenue Segments: The company's revenue is primarily derived from replacement parts, hard parts, and other parts and accessories. Replacement parts accounted for 63% of revenue, hard parts for 19%, and other parts for 1% during the twenty-six weeks ended June 29, 2024.
- Geographical Performance: The company operates primarily in the United States and the Philippines, with offshore operations in the Philippines contributing to the overall business performance.
- New Production Launches: In June 2024, CarParts.com began operations in a new semi-automated facility in Las Vegas, Nevada. This facility is expected to reduce last-mile transportation expenses to the West Coast and enhance customer service through expedited delivery.
- Future Outlook: The company aims to optimize supply chain management, upgrade logistics, invest in technology, expand into new business lines, and drive year-over-year increases in new customers and repeat business. The focus is on maintaining financial discipline while maximizing gross profit and capturing a larger market share.