US Auto Parts Reports Net Loss of $3.6 Million in 1st Quarter

US Auto Parts Reports Net Loss of $3.6 Million in 1st Quarter

The company continues to take a hit from its dispute with U.S. Customs and Border Protection.

Internet retailer U.S. Auto Parts reported net sales of $74.7 million for the first quarter, down from $78.4 million in first-quarter 2018.

The company reported a net loss of $3.6 million or minus 10 cents per share, down from net income of $600,000 or 1 cent per share in first-quarter 2018.

The company attributed much of the decline to its dispute with U.S. Customs and Border Protection, asserting that the situation caused a reduction in traffic and lower in-stock rates. Last year, the federal agency held some of the company’s shipping containers at the Port of Norfolk based on allegations that U.S. Auto Parts had imported some counterfeit grilles.

The dispute with Customs also cut into gross profit, which declined from $23.2 million in Q1 2018 to $20.1 million in Q1 2019, according to the company.

“During the first quarter, we began to lay the foundation to return U.S. Auto Parts to profitable revenue growth,” said Lev Peker, CEO of Carson, California-based U.S. Auto Parts. “I took over the leadership position in January, and we have already begun to rebuild and strengthen our team with a new chief marketing officer, chief legal officer and chief operating and financial officer, all of whom bring unique qualifications and skillsets to U.S. Auto Parts. We have also brought in critical personnel to execute our new growth strategy, including a new user-experience team, SEM and content teams and retention marketing teams.

“We began to deploy various strategic initiatives during the quarter, including the consolidation of multiple websites and marketplace stores. As mentioned on our last quarterly update, we want to focus our resources on fewer properties to do a better job at both growing and optimizing these sites, while ensuring each property has a unique and differentiated value proposition for the customer.”

To reduce shipping times, the company recently signed a new lease for a 125,000-square-foot distribution center in Las Vegas. Expected to go live in September, the DC will enable U.S. Auto Parts to provide two-way delivery to 93% of the country, according to the company.

“Although we have begun to take the necessary steps to return U.S. Auto Parts to growth, there is still much work to be done, particularly with improving our in-stock rates as we continue to be impacted by prior management decisions pertaining to the customs issue,” Peker said. “Nevertheless, we remain committed to achieving revenue growth and positive adjusted EBITDA in 2019, and continue to expect the benefit of our various initiatives to materialize as we exit the year.”

You May Also Like

Auto Care Association Certified as a Great Place to Work

“This prestigious award is a testament to the association’s commitment to creating an inclusive, supportive and dynamic work environment for its employees,” Auto Care said.

The Auto Care Association announced it has been certified as a Great Place to Work.

“This prestigious award is a testament to the association’s commitment to creating an inclusive, supportive and dynamic work environment for its employees,” Auto Care said in a news release.

With a remarkable 95% of employees affirming that the Auto Care Association is a great place to work, the organization stands out significantly above the national average. This recognition is based on direct feedback from employees, provided as part of the Great Place to Work’s rigorous, data-driven methodology.

GPC Reports 2023 Results, Announces Global Restructuring Program

The restructuring includes a voluntary retirement offer in the United States.

AutoZone Ramping Up International Growth

Its stores in Brazil and Mexico have posted double-digit same-store sales growth for two consecutive quarters.

AutoZone Reports 5% Increase in Fiscal Q1 Net Sales

A mild start to the winter affected DIY sales in some parts of the country.

AutoZone Reports 6% Increase in Fiscal Q4 Sales

Domestic same-store sales for the fourth quarter, which ended Aug. 26, were up 1.7%.

Other Posts

HD Repair Shops Report Increases in Counter Sales, Labor Rates

The data comes from a Fullbay report published in partnership with ATA’s Technology and Maintenance Council.

Heavy Duty Repair
Applications Open for Federated Car Care Scholarships

Interested students should complete and submit their applications at AutomotiveScholarships.com by March 31.

BendPak Names Expert Automotive Primary Distributor in Las Vegas Valley

Under the agreement, Expert Automotive Equipment will offer and support equipment sold under the BendPak, Ranger, Cool Boss and Autostacker brands.

Expert Automotive
Auto Care Association Leaders Visit Northwood University

Auto Care President and CEO Bill Hanvey was the guest lecturer for several Northwood automotive aftermarket courses at its Midland campus.

Bill Hanvey Auto Care Northwood