CarParts.com Faces Challenges Amid Strategic Shifts

CarParts.com Inc ( (PRTS) ) has released its Q1 earnings. Here is a breakdown of the information CarParts.com Inc presented to its investors.

CarParts.com, Inc. is a technology-driven eCommerce company specializing in automotive parts and accessories, providing solutions for vehicle repair and maintenance. Headquartered in Torrance, California, the company aims to simplify the automotive repair process for drivers across the nation.

In the first quarter of 2025, CarParts.com reported a decrease in net sales by 11% to $147.4 million compared to the previous year. The company also experienced a net loss of $15.3 million, which was a significant increase from the $6.5 million loss in the same quarter last year.

Key financial metrics revealed a gross profit of $47.3 million with a gross margin of 32.1%, down from $53.9 million and 32.4% respectively in the previous year. Operating expenses rose to $62.5 million, contributing to the increased net loss. The company highlighted the impact of soft consumer demand and increased marketing costs as major challenges.

Despite the setbacks, CarParts.com is focusing on strategic initiatives such as targeting higher-margin sales, enhancing customer lifetime value through its mobile app, and exploring wholesale opportunities. The company reported positive early results in the second quarter with double-digit revenue growth on reduced marketing spend.

Looking ahead, CarParts.com is evaluating strategic alternatives and is optimistic about transforming its profitability by realigning its customer acquisition strategy and focusing on high-margin opportunities.