CarParts.com, Inc. Segments Disclosure
Note 11 – Segment Information
The Company operates as a 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, mobile app, online marketplaces and its wholesale platform. 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 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 – 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 | |||||||
January 3, 2026 | December 28, 2024 | ||||||
Net sales | $ | 547,525 | $ | 588,846 | |||
Product COGS | 264,720 | 279,100 | |||||
Freight and fuel surcharge expense | 103,456 | 113,007 | |||||
Advertising expense | 81,332 | 81,860 | |||||
Employee payroll expense | 72,965 | 79,136 | |||||
Rent and facilities expense | 13,633 | 15,493 | |||||
Depreciation and amortization | 20,621 | 18,975 | |||||
Stock compensation expense | 8,108 | 11,985 | |||||
Impairment of long-lived assets | 3,690 | — | |||||
Other segment items(1) | 28,629 | 30,192 | |||||
Interest expense (income), net | 814 | (301) | |||||
Net loss | $ | (50,443) | $ | (40,601) | |||
| (1) | Other segment items primarily includes technology expense, general and administrative expense, fulfillment expense and marketing expense. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 5, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 2, 2022 | |
| 2017 | Mar 14, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.