CarParts.com, Inc. reported net sales of $147.4 million for the first quarter of 2025, an 11% decrease from $166.3 million in the year-ago quarter. This decline was primarily due to soft consumer demand, inclement weather, and ongoing pressures in the lighting and mirrors product categories.
The company's gross profit for the quarter was $47.3 million, with the gross margin decreasing by 30 basis points to 32.1%, mainly driven by increased outbound freight costs. CarParts.com recorded a net loss of $15.3 million, compared to a net loss of $6.5 million in the prior year's quarter.
Adjusted EBITDA for the first quarter was a loss of $6.2 million, a decrease from a positive $1.1 million in the year-ago quarter, primarily due to higher marketing costs and lower gross margin. As of March 29, 2025, the company's cash balance stood at $38.5 million with no revolver debt.
CEO David Meniane noted that while top-line and operating expenses were in line with expectations, gross margin compression and the advertising spend climate significantly impacted profitability. The company continues to focus on upgrading its customer base, diversifying acquisition mix, and growing high-margin fee income and wholesale opportunities. No specific guidance for 2025 was provided due to the ongoing exploration of strategic alternatives.
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