The following is a summary of the CarParts.com, Inc. (PRTS) Q1 2024 Earnings Call Transcript:
Financial Performance:
CarParts.com reported Q1 2024 sales of $166 million, a 5% year-over-year decline driven mostly by challenging conditions in lighting and mirrors categories.
Gross profit stood at $53.9 million, a reduction of about 14% compared to the last year. Gross margin was 32.4%, down from previous year's 35.6%.
The firm incurred a GAAP net loss of $6.5 million, contrasting with a net income of $1.1 million in the previous year.
2024 revenue is projected to fall to between $600 million and $625 million but they aim for a gross margin percent higher than previous guidance.
Business Progress:
CarParts.com is making strides in pricing optimization, marketing, last-mile transportation costs, and product expansion to improve margins.
The firm launched a new mobile app, which now contributes to 8% of e-commerce revenue.
They're expanding their inventory by adding new SKUs, largely under the JC Whitney brand to attract more customers and boost profit margins.
Plans are underway to begin operations at a semi-automated facility in Las Vegas to enhance customer experience and operational efficiencies.
Aims are set to boost adjusted EBITDA growth next year through improvements in efficiency and profitability, with a medium-term target of 6% to 8% adjusted EBITDA margin and increased free cash flow generation.
More details: CarParts.com IR
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