CarParts.com, Inc. (PRTS): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how CarParts.com, Inc. (PRTS), a prominent player in the online auto parts market, operates and generates revenue? With over 25 years of experience, CarParts.com has become a go-to destination for drivers seeking quality repair and maintenance solutions, offering over 1 million auto parts and accessories. But how did it all begin, who owns the company, and what's their mission? Keep reading to discover the history, ownership structure, and the inner workings of this technology-driven eCommerce business, including how it makes money and its strategic vision for the future, especially considering its recent fiscal year 2024 results showing net sales of $588.8 million and a gross margin of 33.4%.

CarParts.com, Inc. (PRTS) History

CarParts.com, Inc.'s Founding Timeline

Year established

The company was established in 1995.

Original location

The company was originally located in Carson, California.

Founding team members

The founding team included:

• Solomon Lee
• Mehran Nia

Initial capital/funding

The initial capital and funding details are not available in the provided context.

CarParts.com, Inc.'s Evolution Milestones

CarParts.com, Inc.'s Transformative Moments

• Rebranding to CarParts.com: The rebranding in 2005 was a transformative moment, shifting the company's image to be more customer-centric and accessible, which helped broaden its appeal and market penetration.
• Acquisition of US Auto Parts: The acquisition significantly expanded the company's product range and market share, establishing it as a major player in the online auto parts retail sector.
• Strategic focus on e-commerce: Recognizing the shift in consumer behavior, the company strategically focused on its e-commerce platform, enhancing user experience and mobile accessibility, which drove substantial revenue growth.
• Response to COVID-19 Pandemic: The company adeptly responded to the surge in online shopping during the COVID-19 pandemic, scaling its operations and supply chain to meet increased demand, resulting in record sales and new customer acquisition.
• Investments in Technology and Supply Chain: Strategic investments in technology and supply chain infrastructure have been crucial in improving efficiency, reducing delivery times, and enhancing customer satisfaction, positioning the company for sustained growth.

To gain a deeper understanding of the company's financial performance, you can read this article: Breaking Down CarParts.com, Inc. (PRTS) Financial Health: Key Insights for Investors

CarParts.com, Inc. (PRTS) Ownership Structure

As a publicly traded company, CarParts.com, Inc.'s ownership is distributed among various shareholders, including institutional investors, individual investors, and company insiders.

CarParts.com, Inc.'s Current Status

CarParts.com, Inc. is a public company, trading under the ticker symbol PRTS on the NASDAQ stock exchange. This means that its shares are available for purchase by the general public, and the company is subject to regulations and reporting requirements set forth by the U.S. Securities and Exchange Commission (SEC).

CarParts.com, Inc.'s Ownership Breakdown

Understanding the ownership structure of CarParts.com, Inc. provides insights into the balance of power and potential influences on the company’s strategic decisions.

CarParts.com, Inc.'s Leadership

The leadership team at CarParts.com, Inc. is responsible for the strategic direction and day-to-day operations of the company. Key members of the leadership team include:

• Lev Peker: Chief Executive Officer
• Ryan Lockwood: Chief Financial Officer
• David Meniane: Chief Operating Officer

For more insights into the financial performance of CarParts.com, Inc., check out: Breaking Down CarParts.com, Inc. (PRTS) Financial Health: Key Insights for Investors

CarParts.com, Inc. (PRTS) Mission and Values

CarParts.com, Inc. aims to provide customers with the parts they need, when they need them, to keep their vehicles on the road. The company focuses on delivering value and convenience through its online platform.

CarParts.com's Core Purpose

Official mission statement

CarParts.com's mission statement is: 'To provide drivers with the parts they need, when they need them, at a price they can afford.'

• Empowering Drivers: The company aims to empower drivers by providing them with easy access to a wide range of auto parts.
• Affordable Pricing: CarParts.com focuses on offering competitive prices to make vehicle maintenance and repairs accessible to more customers.
• Timely Delivery: Ensuring that customers receive their orders promptly is a key component of their mission.

Vision statement

While a specific formal vision statement may not be publicly highlighted, CarParts.com's actions and goals suggest a vision focused on:

• Being the Leading Online Auto Parts Retailer: To become the go-to online destination for auto parts, recognized for its extensive selection, competitive pricing, and customer service.
• Technological Innovation: Continuously improving the online shopping experience through technology to make it easier for customers to find and purchase the parts they need.
• Customer Satisfaction: Building long-term relationships with customers by providing exceptional service and value.

Company slogan/tagline

CarParts.com uses taglines and slogans that emphasize their commitment to customer convenience and value. Examples include:

• 'Right Parts, Guaranteed Fit.' This highlights the company's focus on providing the correct parts for specific vehicles.
• 'Get Back on the Road.' This tagline emphasizes the company's goal of helping customers quickly and affordably repair their vehicles.

For more insights into CarParts.com, Inc., check out: Exploring CarParts.com, Inc. (PRTS) Investor Profile: Who’s Buying and Why?

CarParts.com, Inc. (PRTS) How It Works

CarParts.com, Inc. operates as an online provider of automotive parts and accessories, connecting consumers with a wide selection of products through its e-commerce platform.

CarParts.com's Product/Service Portfolio

CarParts.com's Operational Framework

CarParts.com uses a multifaceted operational framework to ensure efficient service delivery:

• E-commerce Platform: The company’s website, CarParts.com, serves as the primary interface for customers to browse and purchase automotive parts.
• Extensive Inventory: A wide range of parts and accessories are stocked to meet diverse customer needs, ensuring high order fulfillment rates.
• Supply Chain Management: CarParts.com focuses on optimizing its supply chain to reduce lead times and improve delivery efficiency.
• Data-Driven Approach: The company leverages data analytics to understand customer preferences, optimize inventory, and refine marketing strategies.
• Customer Service: Dedicated customer service teams assist with order inquiries, technical support, and returns, enhancing customer satisfaction.

CarParts.com's Strategic Advantages

CarParts.com has several strategic advantages that enable its success in the competitive automotive parts market:

• Broad Product Range: A comprehensive selection of parts and accessories caters to a wide array of vehicle makes and models.
• Competitive Pricing: CarParts.com offers competitive pricing, attracting cost-conscious consumers.
• Direct-to-Consumer Model: By selling directly to consumers, the company cuts out intermediaries, improving margins and controlling the customer experience.
• Strong Online Presence: A user-friendly website and effective digital marketing strategies drive traffic and sales.
• Focus on Technology: Investment in technology enhances operational efficiency and improves the customer shopping experience.

For more insights into the investors and motivations behind CarParts.com, explore this detailed profile: Exploring CarParts.com, Inc. (PRTS) Investor Profile: Who’s Buying and Why?

CarParts.com, Inc. (PRTS) How It Makes Money

CarParts.com, Inc. primarily generates revenue through the online sale of automotive parts and accessories to consumers.

CarParts.com, Inc.'s Revenue Breakdown

As the latest complete fiscal year is 2024, the subsequent analysis will focus on the financial data available up to that period.

CarParts.com, Inc.'s Business Economics

CarParts.com, Inc.'s business economics are influenced by several factors, including pricing strategies, supply chain management, and customer acquisition costs. Here's a breakdown:

• Pricing Strategy: The company employs competitive pricing, leveraging its direct-to-consumer model to offer parts at prices lower than traditional brick-and-mortar stores. Discounts and promotional offers are frequently used to attract customers.
• Supply Chain: A robust supply chain is crucial. CarParts.com, Inc. manages a network of distribution centers to ensure timely delivery, which enhances customer satisfaction and repeat business.
• Customer Acquisition: Online marketing, including SEO, SEM, and email campaigns, drives customer acquisition. The cost-effectiveness of these strategies impacts overall profitability.
• Gross Margin: Monitoring gross margin is essential. Factors like product mix, supplier costs, and shipping expenses affect the bottom line.

CarParts.com, Inc.'s Financial Performance

Key financial metrics provide insights into the company's health and growth trajectory. As of fiscal year 2024:

• Net Sales: CarParts.com, Inc. reported Net Sales of $689.4 million for the year ended December 28, 2024, representing an increase of 6.4% as compared to $647.8 million for the year ended December 31, 2023.
• Gross Profit: Gross profit increased $208.4 million for the year ended December 28, 2024, from $194.3 million for the year ended December 31, 2023.
• Net Income/Loss: The company’s net income was $3.9 million for the year ended December 28, 2024, as compared to a net loss of $13.0 million for the year ended December 31, 2023.
• Cash and Equivalents: As of December 28, 2024, CarParts.com, Inc. had cash and cash equivalents of $39.4 million.

For further insights into investor behavior and company performance, consider reading: Exploring CarParts.com, Inc. (PRTS) Investor Profile: Who’s Buying and Why?

CarParts.com, Inc. (PRTS) Market Position & Future Outlook

CarParts.com is strategically positioned to capitalize on the growing online auto parts market, focusing on expanding its product offerings and enhancing customer experience; the company faces challenges related to competition and supply chain dynamics, but its investments in technology and infrastructure aim to drive future growth.

Competitive Landscape

Opportunities & Challenges

Industry Position

CarParts.com holds a notable position in the online auto parts market, distinguished by its direct-to-consumer approach and expanding catalog. Key aspects of its industry standing include:

• Digital Focus: CarParts.com operates primarily online, allowing it to reach a broad customer base without the overhead costs of physical stores.
• Private Label Growth: The company is actively growing its private label brands, which offer higher margins and greater control over product quality.
• Customer Experience: Investments in user-friendly website design and efficient delivery services aim to enhance customer satisfaction and loyalty.

To gain more insight into the core values and guiding principles that drive CarParts.com, explore: Mission Statement, Vision, & Core Values of CarParts.com, Inc. (PRTS).