Carparts.Com Inc (PRTS) 2024 Q2 法說會逐字稿

Good afternoon. (Operator Instructions) Please note this call is being recorded. I would now like to pass the conference over to our host, Tina Mirfarsi, Senior Vice President of Global Communications and culture. Please go ahead.

午安.（操作員說明）請注意此通話正在錄音。現在我想將會議交給我們的東道主、全球傳播和文化高級副總裁蒂娜·米爾法西 (Tina Mirfarsi)。請繼續。

Hello, everyone, and thank you for joining us for the CarParts.com second-quarter conference call. Joining me today are David Meniane, Chief Executive Officer; Ryan Lockwood, Chief Financial Officer; and Michael Huffaker, Chief Operating Officer.

大家好，感謝您參加 CarParts.com 第二季電話會議。今天與我一起出席的是執行長 David Meniane；瑞安‧洛克伍德，財務長；和首席營運長邁克爾·赫法克(Michael Huffaker)。

Before I turn it over to David to start the meeting, I have some important disclosures. The prepared remarks and responses to your questions could contain certain forward-looking statements related to the business under the federal securities laws.

在我將其交給大衛開始會議之前，我有一些重要的披露。準備好的評論和對您問題的答覆可能包含與聯邦證券法規定的業務相關的某些前瞻性陳述。

Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with the business. For a discussion of the material risks and other important factors that could affect results, please refer to the CarParts.com annual report on Form 10-K and 10-Q's as filed with the SEC, both of which can be found on our Investor Relations website.

由於與業務相關的風險和不確定性，實際結果可能與這些前瞻性陳述中包含或暗示的結果有重大差異。有關重大風險和其他可能影響結果的重要因素的討論，請參閱 CarParts.com 向 SEC 提交的 10-K 表格和 10-Q 表格年度報告，這兩份報告都可以在我們的投資者關係中找到網站。

On the call, both GAAP and non-GAAP financial measures will be discussed a reconciliation of GAAP to non-GAAP financial measures is provided in the CarParts.com press release issued today.

在電話會議上，我們將討論 GAAP 和非 GAAP 財務指標，今天發布的 CarParts.com 新聞稿中提供了 GAAP 與非 GAAP 財務指標的調整表。

And with that, I would now like to turn the call over to David.

現在我想把電話轉給大衛。

Thank you, Tina, and thanks, everyone, for joining us today. I'd like to start with the most important takeaways from this quarter before I turn it over to Ryan to review our financial performance in detail.

謝謝蒂娜，也謝謝大家今天加入我們。我想先從本季最重要的要點開始，然後再交給 Ryan 詳細審查我們的財務表現。

Last quarter, we discussed our emphasis on financial discipline by focusing on driving gross and net margins, accelerating efficiency and effectiveness to quickly deliver improved profitability and achieving a path to sustainable and profitable growth with strong long-term free cash flow.

上個季度，我們討論了我們對財務紀律的重視，重點是提高毛利率和淨利潤率，提高效率和有效性，以快速提高盈利能力，並通過強勁的長期自由現金流實現可持續和盈利增長的道路。

In the second quarter, we made significant progress on gross margin and operating efficiencies, which reinforces our confidence that we're on the right track. We expect fiscal year 2024 to be a low watermark year as we execute on the changes we have been making. This should position us for a strong fiscal 2025 and beyond.

第二季度，我們在毛利率和營運效率方面取得了重大進展，這增強了我們對走在正確軌道上的信心。我們預計 2024 財年將是低水位年，因為我們將執行我們一直在進行的變革。這將使我們能夠在 2025 財年及以後實現強勁的業績。

And we are confident in our road map and our opportunity as a leading online retailer in a highly fragmented $400 billion auto-parts market. In the first half of the year, we updated our pricing and marketing acquisition strategies to target more profitable customers and generated higher gross margins.

我們對自己的路線圖以及作為領先的線上零售商在高度分散的 4000 億美元汽車零件市場中的機會充滿信心。上半年，我們更新了定價和行銷收購策略，以瞄準利潤更高的客戶並產生更高的毛利率。

As a result, in the second quarter, we saw sequential margin improvement with product margins at 54%, up 210 basis points from Q1. We expect Q3 to be sequentially higher, combined with the cost reduction initiatives I'll discuss in a moment, we anticipate better unit economics on less volume.

因此，第二季的利潤率較上季改善，產品利潤率為 54%，比第一季提高了 210 個基點。我們預計第三季將連續走高，再加上我稍後將討論的成本削減舉措，我們預計在更少的產量下會獲得更好的單位經濟效益。

However, pricing actions and beginning to change the overall profile of our customers negatively impacted sales, which were down to $144 million from $177 million in the prior year period. Our operational highlights for the quarter were as follows.

然而，定價行動和開始改變客戶的整體狀況對銷售額產生了負面影響，銷售額從去年同期的 1.77 億美元降至 1.44 億美元。我們本季的營運亮點如下。

We continued to optimize our product and price assortment to maximize the profitability of our e-commerce channel. Our mobile app continues to drive strong momentum with over 450,000 downloads, more than double the number from the beginning of the year.

我們持續優化產品和價格品種，以最大限度地提高電子商務管道的獲利能力。我們的行動應用程式持續保持強勁勢頭，下載量超過 45 萬次，是年初的兩倍多。

In addition, in just 12 months after launching mobile app sales accounted for 8% of our total e-commerce revenue, with approximately 80% of our customers shopping on mobile. Over time, we expect direct in-app purchases to drive savings in advertising spend by reducing our reliance on search engines and performance marketing as well as incentivizing repeat purchases.

此外，在推出行動應用程式後的短短 12 個月內，銷售額就占到我們電子商務總收入的 8%，大約 80% 的客戶在行動裝置上購物。隨著時間的推移，我們預計直接應用程式內購買將透過減少對搜尋引擎和效果行銷的依賴以及激勵重複購買來節省廣告支出。

Second, we continue to invest in our marketing channels. We are making strides on building brand awareness and recognition of our leading digital first and customer-centric automotive e-commerce strategy, which is critical to capturing our target high-value customer base. In July, we launched our first ever comprehensive brand campaign.

其次，我們持續投資行銷通路。我們正在努力建立品牌知名度和對我們領先的數位優先和以客戶為中心的汽車電子商務策略的認可，這對於捕獲我們的目標高價值客戶群至關重要。七月，我們推出了第一個全面的品牌活動。

Our now that's my speed campaign, along with our new tag line Quality Parts Price Right, is running across top social media platforms, YouTube and connected TV. This campaign highlights our customer value propositions. Our extensive selection of over 1 million quality parts at competitive pricing and our hassle-free e-commerce solution. We are committed to moving up the marketing funnel to establish CarParts.com as one of the most trusted and recognizable brands in the industry.

我們的「現在就是我的速度」活動以及我們的新口號「優質零件價格合理」正在頂級社交媒體平台、YouTube 和連網電視上開展。該活動突顯了我們的客戶價值主張。我們以具有競爭力的價格提供超過 100 萬種優質零件的廣泛選擇，並提供無憂的電子商務解決方案。我們致力於提升行銷管道，將 CarParts.com 打造成業界最值得信賴和最知名的品牌之一。

Our goal is to become the go-to destination for all automotive repair and maintenance needs, capitalizing on our infrastructure, website, traffic, and customer list. We also want to welcome our new Chief Marketing Officer, Christina Thelin, who brings over 20 years of experience in marketing with an extensive background in building global brands and award winning campaigns across several Fortune 500 companies, including Google, Twitter, Visa, and Procter & Gamble.

我們的目標是利用我們的基礎設施、網站、流量和客戶名單，成為滿足所有汽車維修和保養需求的首選目的地。我們也歡迎新任行銷長Christina Thelin，她擁有20 多年的行銷經驗，在打造全球品牌和在多家財富500 強公司（包括Google、Twitter、Visa 和Procter）開展屢獲殊榮的活動方面擁有豐富的背景＆賭博。

As CMO, Christina will lead our strategic marketing initiatives as we continue to expand our market presence, drive customer engagement and increase awareness for CarParts.com. We are confident that her strategic marketing, vision and proven track record will help propel our company forward. We are thrilled to have her on the teams.

作為首席行銷官，克里斯蒂娜將領導我們的策略行銷計劃，幫助我們繼續擴大市場份額、推動客戶參與並提高 CarParts.com 的知名度。我們相信，她的策略行銷、願景和良好的業績記錄將有助於推動我們公司向前發展。我們很高興她加入團隊。

And third, we made significant progress on the upgrade of our logistics and reduction of our freight costs. We've identified opportunities for pick, pack, and shipping optimization that will drive reductions in freight costs and improve margins.

第三是物流升級、貨運成本下降有重大進展。我們已經發現了揀貨、包裝和運輸優化的機會，這將有助於降低貨運成本並提高利潤。

Combined with our product margin improvement, we believe we can continue to improve gross margin after freight in the third quarter. Higher gross margin percentage combined with operational efficiencies should result in increased profitability for the company.

結合我們產品利潤率的改善，我們相信第三季運費後的毛利率能夠持續改善。更高的毛利率加上營運效率應該會提高公司的獲利能力。

In June, our new Las Vegas Fulfillment Center became operational and is now shipping more than 10% of our network volume. As we exit the year, we expect this building to handle close to 20% of the company volume as we service the western part of the country. The facility's assortment paired with a state of the art AI powered PIC module and extensive conveyance allows for a significant reduction in operating costs.

6 月，我們新的拉斯維加斯營運中心投入運營，目前的運輸量占我們網路運輸量的 10% 以上。到今年年底，我們預計這棟大樓將處理我們為該國西部地區提供服務的公司業務量的近 20%。該設施的品種與最先進的人工智慧驅動的 PIC 模組和廣泛的運輸相結合，可以顯著降低營運成本。

This investment was made to drive operating leverage and growth in the form of process efficiencies and improved conversion for customers in the region. We expect those savings to start ramping in the second half of 2024 and fully realized in 2025.

這項投資旨在提高該地區客戶的流程效率和轉換率，從而推動營運槓桿和成長。我們預計這些節省將於 2024 年下半年開始增加，並於 2025 年完全實現。

I'll now turn the call over to Ryan to lead us through our financial results.

現在我將把電話轉給瑞安，讓他帶領我們了解我們的財務表現。

Thank you, David. In Q2, we reported revenues of $144.3 million, down 18% from $177 million last year. The decline was driven primarily by deliberate price increases to drive gross margin expansion, combined with softer consumer demand.

謝謝你，大衛。第二季度，我們報告營收為 1.443 億美元，比去年的 1.77 億美元下降 18%。下降的主要原因是為推動毛利率擴張而故意漲價，加上消費者需求疲軟。

Gross profit for the quarter was $48.4 million, down approximately 20% compared to the prior year. Gross margin was 33.5% of sales down from 34.2% in the prior year period and up sequentially from 32.4% last year. Gross margin improvement from increased prices and expanded brand margins related to our efforts in the quarter were offset by higher year-over-year freight costs.

該季度毛利為 4,840 萬美元，比上年同期下降約 20%。毛利率佔銷售額的 33.5%，低於去年同期的 34.2%，較去年同期的 32.4% 上升。與我們本季的努力相關的價格上漲和品牌利潤擴大帶來的毛利率改善被年比貨運成本的上漲所抵銷。

As David mentioned, driving gross and net margin to strengthen financial discipline is a central part of our strategy, and we expect to see continued improvement in the quarters ahead. GAAP net loss for the quarter was $8.7 million compared to net loss of $0.7 million in the prior year period, primarily driven by lower flow-through from gross margin combined with certain onetime.

正如大衛所提到的，提高毛利率和淨利潤率以加強財務紀律是我們策略的核心部分，我們預計未來幾季將繼續改善。本季 GAAP 淨虧損為 870 萬美元，而去年同期淨虧損為 70 萬美元，主要是由於毛利率流量下降以及某些一次性虧損所致。

We reported adjusted EBITDA loss of $0.1 million, down from $6.3 million in the prior year period, primarily due to costs related to the move and opening of our new Las Vegas facility. Technology transformation costs, as well as special project expenses related to our strategy refocus the total amount of expenses outside of our normal operations was approximately $2.8 million in the quarter.

我們報告調整後 EBITDA 虧損為 10 萬美元，低於去年同期的 630 萬美元，這主要是由於與我們拉斯維加斯新工廠的搬遷和開業相關的成本造成的。技術轉型成本以及與我們的策略重新調整相關的特殊專案費用，本季正常營運之外的費用總額約為 280 萬美元。

Turning to the balance sheet, we ended the quarter with $34 million of cash and no revolver debt. We generated $354,000 of interest income in the second quarter. Our significant cash position and untapped revolver continues to support our business plan. As we finalize the opening of our new semi-automated Vegas Fulfillment Center, our free cash flow should improve. The inventory balance at quarter end was $109 million versus $114 million in the prior year.

轉向資產負債表，本季末我們擁有 3,400 萬美元現金，沒有循環債務。第二季我們產生了 354,000 美元的利息收入。我們大量的現金狀況和未開發的左輪手槍繼續支持我們的業務計劃。當我們完成新的半自動化維加斯履行中心的開幕後，我們的自由現金流應該會有所改善。季末庫存餘額為 1.09 億美元，去年同期為 1.14 億美元。

Turning to our outlook for 2024. For the full year, we expect revenues at the low end of our guidance range of $600 million to $625 million, reflective of our gross margin improvement focus for the year. We remain in line with our previously stated gross profit margin guidance of 33% plus or minus 100 basis points.

轉向我們對 2024 年的展望。對於全年，我們預計收入將處於指導範圍的低端，即 6 億至 6.25 億美元，這反映了我們今年毛利率改善的重點。我們仍然與先前規定的 33% 的毛利率指引保持一致，上下浮動 100 個基點。

Thanks, Ryan. As we've outlined, we are positioning CarParts for the future to our work to balance gross margin expansion and revenue. These improvements span our entire business from customer facing improvements to enhance product assortment and process changes they're making us more efficient across every operating group at the company.

謝謝，瑞安。正如我們所概述的，我們將未來的 CarParts 定位到我們的工作中，以平衡毛利率擴張和收入。這些改進涵蓋了我們的整個業務，從面向客戶的改進到增強產品種類和流程變革，它們使我們公司每個營運團隊的效率更高。

We are forging a path that we expect will result in achieving sustainable and significantly positive adjusted EBITDA next year, while working towards achieving a 6% to 8% adjusted EBITDA margin and enhanced free cash flow generation in the medium term.

我們正在開闢一條道路，預計明年將實現可持續且大幅調整後的 EBITDA，同時努力實現 6% 至 8% 的調整後 EBITDA 利潤率，並在中期內增強自由現金流的產生。

We expect to emerge from this period of transition strongly positioned to capture the tremendous and growing opportunity in front of us within a highly fragmented and underserved $400 billion automotive aftermarket. Our customers are excited by our offering and our business is becoming more efficient, highly differentiated, scalable and difficult to replicate.

我們期望在經歷這一轉型期後，能夠在高度分散且服務不足的 4000 億美元汽車售後市場中抓住擺在我們面前的巨大且不斷增長的機會。我們的客戶對我們的產品感到興奮，我們的業務正在變得更有效率、高度差異化、可擴展且難以複製。

We remain firmly focused on becoming the go-to destination for all automotive repair and maintenance needs. I would like to thank each and every person across our global teams for their hard work and commitment as we continue to execute on our transformation.

我們仍然堅定地致力於成為滿足所有汽車維修和保養需求的首選目的地。我要感謝我們全球團隊中的每一個人在我們繼續實施轉型過程中的辛勤工作和承諾。

Thank you, everyone, for joining today's call. We'll now turn it over to the operator and open it up for your questions.

謝謝大家參加今天的電話會議。我們現在將其移交給操作員並打開它以供您提問。

(Operator Instructions) Ryan Sigdahl, Craig-Hallum Capital Group.

（操作員說明）Ryan Sigdahl，Craig-Hallum Capital Group。

Hey, good afternoon, guys. Want to start with guidance. So Q2 normally seasonally strongest quarter from a volume standpoint, revenue standpoint, even at the low end of your guidance range, it implies sequentially revenue will be up in the back half, Q3 to Q4, on average, I guess, relative to Q2. So I guess what gives you that confidence, given it seems you guys are prioritizing margin over price and volume here?

嘿，下午好，夥計們。想從指導開始。因此，從銷量和收入的角度來看，第二季度通常是季節性最強的季度，即使在指導範圍的低端，這也意味著我認為相對於第二季度，第三季度到第四季度的後半段營收將連續成長。所以我想是什麼給了你們這樣的信心，因為你們似乎優先考慮利潤而不是價格和數量？

Yeah. I think we're going to end up trying to run. It's a little bit unconventional, I guess, given prior seasons. But we do think that we can run a little bit flattish through the whole back half comparable to Q2. And I think what gives us the confidence is a lot of the things that David mentioned. We have a lot of projects that are backloaded coming out essentially every month from now until the end of the year, and we think a lot of those are going to give us a tailwind on revenues.

是的。我想我們最終會嘗試逃跑。考慮到前幾季，我想這有點不尋常。但我們確實認為我們可以在整個後半段表現得與第二季相當。我認為大衛提到的很多事情給了我們信心。從現在到年底，我們基本上每個月都會有很多回載的項目，我們認為其中許多項目將為我們帶來收入的推動。

Can you maybe elaborate or give us a little more time frame and what those specific projects are?

您能否詳細說明一下或給我們更多的時間框架以及這些具體項目是什麼？

Yeah, Ryan, it's Davis. We have a number of things on the e-commerce road map and the mobile app. We have some stuff around search. We have upsell cross-sell. We have several fee income initiatives. And at the same time, it's combined with a kind of a more fully comprehensive marketing road map.

是的，瑞安，我是戴維斯。我們在電子商務路線圖和行動應用程式上有很多東西。我們有一些關於搜尋的東西。我們有追加銷售交叉銷售。我們有多項收費收入計劃。同時，它也結合了更全面全面的行銷路線圖。

We just launched our campaign, which is showing early signs of positive progress. At the same time, we have assortment expansion. So we have a very aggressive roadmap, but I think we definitely have the confidence that we can hit the numbers.

我們剛剛啟動了我們的活動，該活動已顯示出積極進展的早期跡象。同時，我們的品類也不斷擴大。因此，我們有一個非常積極的路線圖，但我認為我們絕對有信心實現目標。

Then just switching over to the Vegas DC with that transition. I guess any quantifiable metrics you can share on efficiency gains, leveraging technology more, I know, in that facility, but anything you can share kind of old versus new there?

然後通過該過渡切換到維加斯特區。我想您可以在該設施中分享關於效率提升、更多地利用技術的任何量化指標，但您可以分享那裡的舊與新的任何東西嗎？

Yeah. Hey, this is Michael. So we're in early days of the building. We've been open for about two weeks thus far, and we are meeting our weekly ramp-up plan to take the building to full entitlement. Over the course of next year, we would expect to get about $2 million in efficiency savings out of this building comparably on over the previous. So we will spend the rest of this year ramping up and optimizing the building, and then we expect $2 million in savings 2025.

是的。嘿，這是麥可。所以我們正處於建設的早期階段。到目前為止，我們已經開放了大約兩週，我們正在完成每週的擴建計劃，以使大樓完全獲得使用權。明年，我們預計這棟大樓將比之前的大樓節省約 200 萬美元的效率。因此，我們將在今年剩餘時間加強和優化建築，預計到 2025 年可節省 200 萬美元。

Great, Ryan, and then I believe you mentioned the increased profitability in the company starting Q3. Ryan or David, I don't remember who said in the prepared remarks. If I take $2.8 million of the nonrecurring costs, add that back to EBITDA in Q2, it doesn't look like you guys did that in your reconciliation. I guess what's the relative benchmark for improvement? Is it quarter over quarter year over year? Just help us think about kind of the EBITDA and profitability ramp through the rest of the year?

太好了，瑞安，然後我相信您提到了公司從第三季度開始盈利能力的提高。瑞安或大衛，我不記得誰在準備好的演講中說的話。如果我將 280 萬美元的非經常性成本加回第二季的 EBITDA，看起來你們在對帳中並沒有這樣做。我想改進的相對基準是什麼？是季度環比還是年比？請幫我們思考今年剩餘時間的 EBITDA 和獲利能力成長情況如何？

Thanks, Ryan. I think what we're really alluding to is we believe that we'll have gross margin expansion. So what happens is we really saw some pretty good sequential gross margin expansion through sequentially every month through Q2, and we expect that to continue through the remainder of the year. So we think that Q3 gross margin should be higher than Q2.

謝謝，瑞安。我認為我們真正指的是我們相信我們的毛利率將會擴大。因此，我們確實看到了第二季每個月毛利率都出現了相當不錯的環比擴張，我們預計這種情況將持續到今年剩餘時間。所以我們認為第三季的毛利率應該會高於第二季。

I think for EBITDA through the remainder of the year, we're working hard to trying to maximize that, but it's obviously going to be contingent on certain of the projects, that David mentioned, launching and then us capturing that profitability as well as balancing some of this improvement with these investments that it takes to get these projects launched

我認為，對於今年剩餘時間的 EBITDA，我們正在努力實現最大化，但這顯然取決於大衛提到的某些項目，啟動然後我們獲取盈利能力並平衡啟動這些項目所需的投資帶來的一些改進

Last one for me, Ryan, you previously said $30 million of cash exiting the year estimated. Any update to that now?

Ryan，您之前說過預計今年將有 3000 萬美元現金退出。現在有更新嗎？

That sounds about right. I would say $25million to $35 million of cash to exit the year dependent on inventory.

聽起來不錯。我想說 2500 萬到 3500 萬美元的現金可以退出這一年，具體取決於庫存。

I'll turn it over to the others.

我會把它交給其他人。

Ryan Peters, Lake Street Capital Market.

彼得斯（Ryan Peters），湖街資本市場。

Yep. Hi, guys. Thanks for taking my questions. First one for me. Just kind of a follow-up on the first question that Ryan had asked about hitting the guidance. You're Can you maybe talk about what you've seen here in Q3 so far?

是的。嗨，大家好。感謝您回答我的問題。第一個對我來說。這只是瑞安提出的關於達到指導方針的第一個問題的後續。您能談談到目前為止您在第三季所看到的情況嗎？

And what are some of these initiatives, how they played out and if you've seen, in fact, some of that bucking that sequential or sort of that seasonal trend that you guys have seen in the past. Just kind of talk about what you've seen so far here in Q3?

這些舉措有哪些？ 它們是如何發揮作用的？請談談您在第三季到目前為止所看到的情況？

Yes. So far in Q3, it's a little tricky. We had some a little bit of a headwind because we're moving Vegas, which was planned and expected. So when we move inventory from one location to another, it becomes non salable temporarily what's on the truck and in the containers until it gets unloaded.

是的。到目前為止，第三季還有些棘手。我們遇到了一些阻力，因為我們要搬到維加斯，這是計劃和預期的。因此，當我們將庫存從一個地點轉移到另一個地點時，卡車上和貨櫃中的貨物暫時無法銷售，直到卸載為止。

And so that makes the read on the current quarter, a little tough and like everybody else, you're probably talking to any other calls, we were impacted by CrowdStrike as well as a lot of our vendors that we work with. FedEx, for example, I believe, is one of them, and we don't really know how many customers were impacted.

因此，這使得當前季度的解讀有點困難，就像其他人一樣，您可能正在與任何其他電話交談，我們受到了 CrowdStrike 以及與我們合作的許多供應商的影響。例如，我認為聯邦快遞就是其中之一，但我們並不真正知道有多少客戶受到影響。

So despite that, we still feel on track for the quarter, the most recent week, which that we just completed, which is pretty clean, is on track. So we still feel good about the quarter, but the read so far on P7 is a little bit of a little bit behind, but a little bit of that was planned.

因此，儘管如此，我們仍然感覺本季步入正軌，最近一周，我們剛完成的工作非常乾淨，正在步入正軌。所以我們仍然對這個季度感覺良好，但到目前為止 P7 的讀數有點落後，但其中有一點是計劃好的。

And if I can add to that, it's David. I think like if you take a step back and you look at the margin profile that we started with at the beginning of the year, that's not a margin profile that we were comfortable with. And some of it is macro related to our customer base, but there's definitely some variables that are within our control.

如果我可以補充的話，那就是大衛。我認為，如果你退後一步，看看我們年初開始的利潤率概況，那不是我們滿意的利潤率概況。其中一些與我們的客戶群宏觀相關，但肯定有一些變數在我們的控制範圍內。

And so what I'm happy about is that we took significant action around pricing, promotions, and discounts, warehouse operations and overall cost structure, which we've talked about on the last call. So the good news is we acted quickly and we made significant progress.

因此，令我高興的是，我們在定價、促銷和折扣、倉庫運營和整體成本結構方面採取了重大行動，我們在上次電話會議中已經討論過這些問題。好消息是我們迅速行動並取得了重大進展。

So for me, the evidence points that I'm looking at is Q2 was better gross margin than Q1. We expect Q3 to be better gross margin than Q2.There's some noise in the P&L in Q2 because of one-time costs and the Vegas move. But once we cycle through these expenses, I think the P&L is going to be much cleaner.

因此，對我來說，我正在尋找的證據表明，第二季的毛利率高於第一季。我們預計第三季的毛利率將好於第二季。但一旦我們循環查看這些費用，我認為損益表將會更加清晰。

And I have full confidence that next year, both top line and bottom line will look significantly better. So it's definitely it's a transition year for us, but I think we have visibility on much better numbers in the next six months.

我完全有信心明年，收入和利潤都會明顯改善。所以這對我們來說絕對是一個過渡年，但我認為我們在接下來的六個月裡可以看到更好的數字。

Okay. Got it. And then thinking about some of the more price-sensitive segments that have been a drag on the business on a path like lighting and mirrors. I think you guys have called out. I mean, have you seen any changes there in the demand environment at all? Or is it still some of those customers are trading down for more inferior type products?

好的。知道了。然後考慮一些對價格更敏感的細分市場，這些細分市場一直拖累照明和鏡子等業務。我想你們已經喊出來了。我的意思是，您是否看到需求環境有任何變化？或者仍然有一些客戶在購買更劣質的產品？

Yeah, that's a great question. You know, historically our customer was definitely the price sensitive, lower income discount seeking customer. And part of the exercise that we're going through is kind of a very deep segmentation trying to focus on the customer base that has a higher propensity for returning more profitable, more efficient marketing spend. And so we're shooting on lower volume, but more profitable customers.

是的，這是一個很好的問題。您知道，從歷史上看，我們的客戶絕對是對價格敏感、尋求較低收入折扣的客戶。我們正在進行的部分工作是進行非常深入的細分，試圖專注於更傾向於回報更多利潤、更有效率的行銷支出的客戶群。因此，我們的目標是銷售量較低但利潤較高的客戶。

We haven't seen a change from Q1 to Q2. The environment is still quite tough. So if you look at our top line, I'd say some of it is not specific to CarParts.com, it's more macro and that customer base and some of it is intentional, raising prices, less reliance on discounts and promotions.

我們沒有看到從第一季到第二季的變化。環境還是比較辛苦的。因此，如果你看看我們的頂線，我會說其中一些不是 CarParts.com 特有的，它更加宏觀，客戶群，其中一些是有意的，提高價格，減少對折扣和促銷的依賴。

Now the good news is if you combine that with all the initiatives around operational efficiency, it should trickle down to the bottom line. So obviously, it's going to take a couple of quarters, but I think long term, like focusing on that customer that is more profitable for us. It's going to pay off.

現在的好消息是，如果將其與圍繞營運效率的所有措施結合起來，它應該會滲透到利潤中。顯然，這需要幾個季度的時間，但我認為從長遠來看，例如專注於對我們來說更有利可圖的客戶。它將得到回報。

Okay. Got it. Thanks for taking my questions.

好的。知道了。感謝您回答我的問題。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。