The following is a summary of the CarParts.com, Inc. (PRTS) Q2 2024 Earnings Call Transcript:
Financial Performance:
CarParts.com reported Q2 revenue of $144.3 million, a decrease of 18% year-over-year from $177 million.
Gross margin for the quarter stood at 33.5%, slightly down from 34.2% in the prior year.
GAAP net loss deepened significantly to $8.7 million from a net loss of $0.7 million in the previous year.Adjusted EBITDA for Q2 was a loss of $0.1 million, down from a positive $6.3 million in the prior year.
The company forecasts full-year 2024 revenues at the lower end of the $600 million to $625 million range.
Business Progress:
CarParts.com launched a new comprehensive brand campaign and a mobile app, which now accounts for 8% of total e-commerce revenue.
The company also opened a new semi-automated Vegas Fulfillment Center, expected to handle close to 20% of company volume by year-end and bring significant operating cost reductions.
Opportunities:
The mobile app's growth and the potential for direct in-app purchases to reduce advertising costs and drive repeat purchases present significant opportunities.
New marketing initiatives and the launch of a comprehensive brand campaign are expected to enhance brand recognition and attract high-value customers.
Risks:
The deliberate pricing actions and customer profile changes have negatively impacted sales volumes, highlighting a strategic risk as the company aims to balance revenue and profitability.
More details: CarParts.com IR
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