Overview

* CarParts.com ( PRTS ) Q2 net sales rise 5% to $151.9 mln, missing estimates

* Net loss widens to $12.7 mln due to lower margins, higher marketing spend

* Company exploring strategic alternatives, including potential sale or investments

Outlook

* CarParts.com ( PRTS ) is not providing 2025 guidance due to strategic evaluations

* Company expects $10 mln annualized cost savings from AI and automation

* CarParts.com ( PRTS ) anticipates margin and efficiency gains from strategic initiatives

Result Drivers

* ECOMMERCE DEMAND - Increased consumer demand through primary eCommerce channel drove sales growth

* MARKETPLACE SOFTNESS - Continued softness in marketplace sales channel partially offset sales growth

* MARGIN PRESSURE - Gross margin decreased due to product mix and tariff impacts

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $151.95 $153.50

mln mln (2

Analysts

)

Q2 Net -$12.71

Income mln

Q2 -$3.12

Adjusted mln

EBITDA

Q2 Gross $49.78

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

* Wall Street's median 12-month price target for Carparts.Com Inc ( PRTS ) is $1.90, about 53.2% above its August 11 closing price of $0.89

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)