CarParts.com (PRTS) 15th Annual Midwest IDEAS Investor Conference summary

Business overview and market position

• Operates as a leading e-commerce auto parts retailer with a broad product range, including collision, mechanical, performance, accessories, and tools.

• Attracts 100 million annual website visitors, processes 6.8 million orders yearly, and is the top eBay store globally.

• Market is highly fragmented, with low e-commerce penetration under 5%, presenting significant growth opportunities.

• Maintains a digital-first strategy, strong balance sheet, and a vertically integrated supply chain.

• Competes mainly with RockAuto, FCP Euro, 1A Auto, and marketplace sellers on eBay and Amazon.

Financial performance and guidance

• Reported $676 million in revenue last year; current year guidance is $600–$625 million due to market softness.

• Ended last quarter with $35 million in cash and $110 million in inventory, with a $75 million untapped credit line.

• Free cash flow positive for several years; expects to return to free cash flow positivity within 1–2 years.

• Share repurchase program active, with $4.3 million spent last year and 25 million shares outstanding.

• Expects year-end cash to be around $30 million, with inventory purchases timed for peak season.

Strategic initiatives and operational improvements

• Reduced couponing and promotions, leading to sequential gross margin improvements.

• Launched a new website on Bloomreach, enabling upsell, cross-sell, VIN lookup, and improved SEO.

• Investing in mobile app adoption to lower customer acquisition costs and drive repeat business.

• Expanding product assortment, including wheels, tires (coming soon), tools, and European/South Korean parts.

• Consolidating 17 private label brands into J.C. Whitney to create marketing efficiencies and a halo effect.