CarParts.com’s Per-Share Loss Beats Estimate by $0.37 as Revenue Reaches $129.3 Million

Key Facts

CarParts.com reported results on October 29 for its fiscal third quarter ended October 3, posting a loss of $0.53 per share, below analysts’ estimate of a $0.90 loss, a $0.37-per-share beat. Revenue was $129.3 million, above the consensus estimate of $126.35 million. But beating expectations does not mean the company made a net profit; it recorded a net loss of $4.1 million. The results came as sales rose year over year, alongside improved gross profit and lower operating expenses. The annual comparison shows losses narrowing clearly, while sales growth remained limited.

Net sales rose 1.2% to $129.3 million, from $127.8 million in the year-earlier quarter. The company said the sales increase was tied to higher consumer demand, while it continued to improve advertising spend. Gross profit was $43.2 million, compared with $42.3 million a year earlier. Gross margin also increased 30 basis points to 33.4%. The company attributed the margin improvement to lower shipping costs, while revenue growth remained too modest to describe as a rapid expansion in activity.

Net loss narrowed to $4.1 million, or $0.53 per share, from $10.9 million, or $1.87 per share, in the year-earlier period. Operating expenses fell to $47.0 million from $52.3 million. The company attributed the decline to consolidating distribution centers, improving advertising-spend efficiency and reducing payroll costs after cutting headcount. Lower expenses were a key factor in improving the bottom line, alongside higher gross profit. The quarterly result, however, remained a net loss, not a profit.

For the first thirty-nine weeks of the fiscal year, sales were $396.93 million, compared with $427.10 million in the year-earlier period. Net loss for the period narrowed to $9.27 million from $38.88 million. The chief executive said the company views recording $1 million in adjusted earnings before interest, taxes, depreciation and amortization as "a foundation to build on," and that after most of the restructuring was completed, its focus was shifting to growth. The broader-period figures highlight continued pressure on sales despite improved losses compared with last year. That puts the quarterly results in the context of an operational turnaround that has not yet ended the net loss.

As part of efforts to expand sales channels, the A-Premium partnership ended the quarter at an annualized revenue run rate of about $55 million, after surpassing the $50 million mark. JC Whitney’s annualized revenue run rate rose to about $3 million, from $2.5 million in the second quarter. The last-mile delivery network also delivered more than 6,000 packages during the quarter, about twice as many as in the second quarter. Next-day delivery became available from three of four distribution centers. These indicators detail the expansion of partnerships and logistics services, while the reported results still included a net loss.

In digital channels, the mobile app contributed 14.5% of e-commerce revenue, up from 12.9% a year earlier, while cumulative downloads reached 1.7 million. The company launched its CarParts+ Rewards loyalty program on October 13 and said membership had exceeded 200,000 since its September pilot launch. It also announced a partnership with Klarna to offer installment payments at checkout. These initiatives followed the end of the reported fiscal quarter, as part of the company’s efforts to expand sales tools and customer retention. The reported results gave no specific later date or new financial outlook.

The stock moved in opposite directions during the October 29 session: it closed at $8.62, up 5.25%, then fell to $7.88 in after-hours trading, down 8.58%. The after-hours trading followed the results announcement that same day. The move reflected a contrast between the stock’s gain during the regular session and its subsequent decline. The results showed revenue exceeding estimates and a per-share loss below expectations, alongside an actual net loss and improvements in operating metrics.