Navigate challenges with strategic …

Appearance date: May 13, 2025

For the complete protocol of the earnings call, see the full profit call transcription.

• CarParts.com Inc (Nasdaq: PRTS) has scaled and optimized its vertically integrated supply chain, which leads to an attractive product margin in the mid -50s.

• The company has invested in a fitment-based proprietary catalog, which includes 83,000 private label skus and 1.5 million skus for premium brands.

• CarParts.com Inc (Nasdaq: PRTS) is the second largest importer of Aftermarket collision parts in the USA and the number one seller worldwide on Ebay Motors.

• The company has repeated its website with a mobile, fit -specific user experience that generates 100 million annual visits and serves 10 million customers.

• CarParts.com Inc (Nasdaq: PRTS) has launched a highly profitable wholesale with the same and the next day last delivery in key markets, which means that a contribution span is up to three times higher than e-commerce.

• CarParts.com Inc (Nasdaq: PRTS) recorded a drop in sales of 11%in the first quarter, mainly due to poor weather and the softer demand from consumers.

• The company recorded a gross profit margin to 32.1%, which is due to the same period of 32.4% in the same period, which is mainly due to the increased output costs.

• CarParts.com Inc (Nasdaq: PRTS) recorded a GAAP Nettoverlust of $ 15.3 million compared to a loss of $ 6.5 million in the previous year.

• The adjusted EBITDA loss in the first quarter was $ 6.2 million, which is due to an adjusted EBITDA of USD 1.1 million in the same period last year due to the soft consumer demand and increased competitive pressure in performance marketing.

• The company was put under considerably under pressure due to gross design and increased advertising expenses.

Q: Can you give more details about how tariffs affect your company and what measures you take to alleviate these effects? A: David Meniane, CEO, explained that less than a quarter of her trademark products from China are imported from Taiwan with two thirds. They take steps such as preliminary stocks, negotiation costs, the dynamic adjustment of the pricing and the optimization of the supply chain and the operating costs to reduce the effects on the tariff.

Q: How did the performance of the first quarter be compared with your expectations and what are your plans to deal with the challenges? A: David Meniane found that the results of the first quarter were disappointing, especially with regard to profitability due to the soft consumer demand and the increased advertising costs. They focus on improving their customer base, diversifying the acquisition mixture and improving their mobile app and their wholesale opportunities to improve profitability.