Company did not provide specific financial guidance for the current qtr or full yr
Overview
US auto parts e-commerce firm's Q2 net sales fell 10.7% yr/yr
Gross margin rose to 33.2%, helped by product mix and lower freight costs
Net loss narrowed and adjusted EBITDA turned positive on lower costs and improved operations
Result drivers and key details
Profitability initiatives - Co said sales decline was mainly due to efforts to improve profitability, including reduced marketing spend targeting lower-margin and lower-lifetime-value customers.
Gross margin expansion - Gross margin rose, driven by product mix and favorable freight costs.
Lower operating expenses - Operating expenses fell, supported by reduced marketing spend, payroll costs from headcount reductions, and warehouse productivity.
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 $10.54, about 85.9% above its August 5 closing price of $5.67.
PRTS•
