“We’re currently evaluating several different transaction structures, including a potential sale of the company and strategic investments that we believe have the potential to strengthen our capabilities and unlock new growth,” Meniane said.
Meniane added that there is no certainty that the company will complete a deal.
CarParts.com announced in a March 5 press release that it was exploring strategic alternatives, including a possible sale of the company, to “maximize value for our shareholders.”
In the meantime, CarParts.com is pursuing strategic initiatives to boost the company’s value, Meniane said Tuesday.
The company achieved positive adjusted EBITDA in June and delivered second-quarter results that showed improvement over the previous quarter, Meniane said.
Meniane attributed the improved results to the company’s mobile app surpassing 1 million users and accounting for 12% of eCommerce revenues; services like products and shipping protection, paid memberships and roadside assistance contributing high-margin fee income; and its eCommerce and mobile app product roadmap delivering improvements in conversion rates, units per order and average order value.
For the remainder of the year, CarParts.com is focused on expanding its product offering, generating high-margin fee income, scaling its B2B offering, continuing to grow its mobile app business and managing cash flow and inventory levels, Meniane said.
“We know this transformation is a multiyear effort,” Meniane said. “We’re focused on rebuilding the core foundation of CarParts.com, one that can scale, innovate and deliver a seamless, high-quality customer experience, while driving greater discipline in both our cost structure and capital deployment.”
Meniane also highlighted challenges faced by CarParts.com. These include noncompliant products imported from China driving a “race to the bottom,” tariffs and inflation weighing on consumer demand, and the macroeconomic environment requiring the company to seek new opportunities for growth.
“As we progress through the remainder of the year, we’ll continue to navigate a dynamic macro environment, including ongoing tariff and impact and pricing volatility, with discipline and agility,” Meniane said. “Our focus remains on profitable growth, anchored by the strong foundation we’ve built.”
