Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.3
Segment Information
9 Months Ended
Sep. 27, 2025
Segment Information  
Segment Information

Note 8 – Segment Information

The Company operates as a single reportable segment (referred to as “segment” herein), engaged in the distribution and selling of aftermarket auto part products (SKUs) to customers through the flagship website, www.carparts.com, app, and online marketplaces. No individual operating segments were identified by the Company.

The Company’s CODM is the Chief Executive Officer. The CODM assesses performance for the entire Company and decides how to allocate resources based on consolidated net loss that is reported on the consolidated statements of operations. The determination that the Company operates as a single segment is consistent with the nature of the operations and the consolidated financial information regularly reviewed by the CODM, for the purposes of evaluating key operating decisions, allocating resources, and planning and forecasting the consolidated operating budget. The measure of segment assets is reported on the consolidated balance sheets as total assets. The Company sells its products primarily to customers in the United States. The accounting policies of the segment are the same as those described in the detail under “Note 1 – Basis of Presentation and Description of Company.”

The CODM is regularly provided with significant segment expenses. The following table summarizes the Company’s segment net sales, significant segment expenses, and segment loss:

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

September 27, 2025

September 28, 2024

September 27, 2025

September 28, 2024

Net sales

$

127,769

$

144,751

$

427,096

$

455,310

Product COGS

61,722

65,776

206,276

214,861

Freight and fuel surcharge expense

23,773

28,005

81,419

87,155

Advertising expense

17,781

22,333

65,097

61,288

Employee payroll expense

17,035

19,477

56,514

60,477

Rent and facilities expense

3,556

4,178

10,466

12,089

Depreciation and amortization

5,242

4,956

15,702

13,436

Stock compensation expense

2,289

3,057

7,434

8,967

Other segment items(1)

6,863

7,022

22,472

22,460

Interest expense (income), net

394

(35)

595

(240)

Net loss

$

(10,885)

$

(10,018)

$

(38,879)

$

(25,183)

(1) Other segment items primarily includes technology expense, general and administrative expense, fulfillment expense and marketing expense.