CarParts.com Q1 sales fall amid marketing cuts

Carparts.Com

07/05/2026 21:15

Overview

US e-commerce auto parts retailer's Q1 net sales fell 10% year-over-year

Company posted first positive adjusted EBITDA since Q1 2024, reflecting cost controls

Net loss narrowed from prior year due to lower operating expenses and higher gross margin

Outlook

Company did not provide specific guidance for the current quarter or full year

Result Drivers

MARKETING SPEND RATIONALIZATION - Co said net sales decline was primarily due to efforts to increase profitability by reducing marketing spend

GROSS MARGIN IMPROVEMENT - Co attributed higher gross margin to product mix and favorable freight costs

OPERATING EXPENSE REDUCTIONS - Co said lower operating expenses resulted from headcount reductions, reduced marketing spend and gain on sale of Philippines subsidiary

Company press release: ID:nPnbw8v2ja

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Slight Beat*
$131.96 mln
$131.38 mln (2 Analysts)
Q1 Net Income
-$1.94 mln
Q1 Adjusted EBITDA
$590,000
Q1 Gross Profit
$42.94 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 is $1.00, about 10.4% above its May 6 closing price of $0.91

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)