Sprouts Farmers Market closes $600 million revolving credit facility
TORRANCE, California - CarParts.com, Inc. (NASDAQ:PRTS) saw its shares fall 8.7% after reporting first quarter results that fell short of analyst expectations, as the online auto parts retailer grappled with soft consumer demand and higher costs.
The company reported a net loss of $15.3 million, or -$0.27 per share, for the quarter ended March 29, 2025, significantly wider than the -$0.09 per share loss analysts were expecting. Revenue declined 11% YoY to $147.4 million, also missing the consensus estimate of $151.01 million.
CarParts.com cited inclement weather and continued pressures in lighting and mirrors as factors contributing to the sales decline. Gross margin contracted 30 basis points to 32.1% due to increased outbound freight costs.
"In the first quarter, our top line and operating expenses were in line with our expectations, the gross margin compression and advertising spend climate put significant pressure on our profitability," said CEO David Meniane.
The company reported adjusted EBITDA of -$6.2 million, compared to $1.1 million in the year-ago quarter. CarParts.com ended the quarter with $38.5 million in cash and no revolver debt.
While not providing formal guidance, management noted revenues were up double digits YoY for the first 6 weeks of Q2 on lower marketing spend. The company is currently evaluating strategic alternatives in response to inbound interest.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.