TORRANCE, Calif. - CarParts.com, Inc. (NASDAQ: PRTS), an e-commerce provider of automotive parts, has recently met the Nasdaq's minimum bid price requirement, the company announced Monday. The Nasdaq Listing Qualifications Department confirmed that CarParts.com's stock maintained a closing bid price of at least $1.00 for 10 consecutive business days, from December 30, 2024, to January 14, 2025. The stock has shown strong momentum recently, with a 17% gain in the past week and currently trading at $1.32, according to InvestingPro data.
This achievement allows CarParts.com to continue its listing on the Nasdaq stock exchange, adhering to the Listing Rule 5550(a)(2). The company's CEO, David Meniane, regarded this development as a significant milestone, indicative of the market's recognition of the company's operational performance and future business potential. While InvestingPro analysis suggests the stock is currently fairly valued, investors should note that the company maintains a moderate debt level with a debt-to-equity ratio of 0.45. Meniane emphasized the company's dedication to creating shareholder value and serving customers with quality automotive parts.
CarParts.com has been in operation for over 25 years, focusing on technology-driven e-commerce solutions for automotive repair and maintenance. The company boasts a vast selection of over 1 million automotive parts and accessories and prides itself on its customer-centric approach, which is evident in its user-friendly website and mobile app. With annual revenue of $612 million and a gross profit margin of 33.5%, the company maintains a strong market presence. InvestingPro subscribers have access to 14 additional exclusive ProTips and comprehensive financial analysis for deeper insights into the company's performance.
The company's fulfillment network supports the prompt delivery of high-quality parts from reputable brands to customers nationwide. CarParts.com, headquartered in Torrance, California, is driven by a vision to empower drivers throughout their vehicle ownership journey.
This announcement is based on a press release statement from CarParts.com, Inc.
In other recent news, CarParts.com has reported improved margins despite a challenging market environment. The company's pre-freight margin rose to 54.6%, attributed to lower input costs and a focus on higher-value customers. Despite a 13% drop in Q3 revenues to $144.8 million, the company reported a gross profit of $51 million. However, it also reported a GAAP net loss of $10 million and an adjusted EBITDA loss of $1.2 million.
In other developments, CarParts.com has launched a new membership program, CarParts+, which includes benefits such as roadside assistance, shipping incentives, and premium customer support. This initiative is part of the company's commitment to innovation and customer-oriented service in the online automotive parts market.
These recent developments highlight the company's strategic shift towards higher profitability and customer service. As part of its future expectations, CarParts.com is confident in achieving positive adjusted EBITDA and improved free cash flow by 2025. The company continues to invest in technology and product assortment to drive its growth.
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