CarParts.com (NASDAQ
RTS) posted disappointing fourth-quarter results, missing both revenue and earnings expectations as weaker demand from budget-conscious consumers weighed on performance.
The company reported a net loss of $0.27 per share, more than double the $0.12 loss anticipated by analysts. Revenue dropped 15% year-over-year to $133.5 million, falling short of the $140.83 million consensus estimate.
Management pointed to a challenging macroeconomic backdrop, especially for lower-income consumers, who increasingly delayed non-essential spending, including vehicle repairs. This trend impacted sales and contributed to a 50 basis point decline in gross margin, which fell to 32.5% compared to the same period last year.
For the full year 2024, net sales declined 13% to $588.8 million, while the company’s annual net loss deepened to $40.6 million, or $0.71 per share, compared to a loss of $8.2 million ($0.15 per share) in 2023.
