Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.1
Segment Information
12 Months Ended
Dec. 28, 2024
Segment Information  
Segment Information

Note 11 – 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 statement 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 accounting policies of the segment are the same as those described in the detail under “Note 1 – Summary of Significant Accounting Policies and Nature of Operations.”

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:

Fiscal Year ended

December 28, 2024

December 30, 2023

Net sales

$

588,846

$

675,729

Product COGS

279,100

327,921

Freight and fuel surcharge expense

113,007

118,402

Advertising expense

81,860

83,146

Employee payroll expense

79,136

81,933

Rent and facilities expense

15,493

13,045

Depreciation and amortization

18,975

16,690

Stock compensation expense

11,985

11,675

Other segment items(1)

30,192

31,776

Interest (income) expense, net

(301)

(636)

Net loss

$

(40,601)

$

(8,223)

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