CarParts.com (PRTS) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were $144.3 million, down 18–18.5% year-over-year, primarily due to price increases and softer consumer demand.

• Gross profit was $48.4 million, with gross margin at 33.5%, down 70 bps year-over-year but up sequentially from Q1.

• Net loss for Q2 2024 was $8.7 million, or $(0.15) per share, compared to a $0.7 million loss last year.

• Adjusted EBITDA was $(0.1) million, down from $6.3 million last year, impacted by lower sales and one-time costs.

• Fiscal 2024 is a transition year, with a focus on financial discipline, margin improvement, and operational efficiency to drive long-term growth.

Financial highlights

• Q2 2024 net sales: $144.3 million (down 18–18.5% year-over-year); YTD net sales: $310.6 million (down 11.9%).

• Q2 2024 gross profit: $48.4 million; gross margin: 33.5% (down 70 bps year-over-year, up 110 bps sequentially from Q1).

• Q2 2024 operating expenses: $57.1 million, down 6.8% year-over-year.

• Ended Q2 with $34–$34.1 million in cash and no revolver debt; inventory at $109 million, down from $114 million last year.

• Q2 2024 basic and diluted EPS: $(0.15); YTD EPS: $(0.27).

Outlook and guidance

• Full-year 2024 revenue expected at the low end of $600–$625 million, with gross margin guidance at 33% ± 100 basis points.

• Management targets sustainable, significantly positive Adjusted EBITDA in 2025 and a 6–8% Adjusted EBITDA margin in the medium term.

• Projected year-end cash balance of $25–$35 million, depending on inventory.

• Management expects existing cash, investments, and available debt financing to be sufficient for operational needs through at least the next twelve months.

• Ongoing investments in technology, supply chain, and customer experience to drive long-term growth.