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TORRANCE, Calif. - CarParts.com, Inc. (NASDAQ:PRTS) reported fourth quarter results that missed analyst expectations, as the online auto parts retailer faced headwinds from softer consumer demand.
The company posted a net loss of -$0.27 per share for Q4, wider than the -$0.12 loss analysts were expecting. Revenue fell 15% YoY to $133.5 million, below the consensus estimate of $140.83 million.
CarParts.com cited a challenging economic environment for lower income consumers in 2024, which led to pullbacks in spending and deferrals of auto repairs. Gross margin contracted 50 basis points to 32.5% compared to the year-ago quarter.
"2024 was an important year in the ongoing transformation of CarParts.com," said CEO David Meniane. "We began the year by refocusing our strategy on three key elements: driving gross and net margin to strengthen financial performance; accelerating efficiency and effectiveness to quickly deliver improved profitability; and achieving sustainable growth with strong long-term free cash flow."
For the full fiscal year 2024, net sales decreased 13% to $588.8 million. The company reported a net loss of -$40.6 million or -$0.71 per share, compared to a net loss of -$8.2 million or -$0.15 per share in fiscal 2023.
CarParts.com ended the year with $36.4 million in cash and no revolver debt. The company said it is currently evaluating strategic alternatives in response to inbound interest and is not providing guidance for 2025 as a result.
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