U.S. Auto Parts Network (NASDAQ: PRTS) reported Q2 EPS of $0.03, $0.03 better than the analyst estimate of $0.00. Revenue for the quarter came in at $118.9 million versus the consensus estimate of $84.63 million.

Q2 2020 Highlights vs. Year-Ago Period

• Q2 net sales increased 61% to a company record $118.9 million vs. $73.7 million.
• Q2 gross profit increased 88% to a company record $40.8 million vs. $21.8 million.
• Q2 gross margin increased 480 basis points to 34.3% vs. 29.5%.
• Q2 net income improved significantly to $1.6 million or $0.03 per diluted share, compared to a net loss of $(1.5) million or $(0.04) per basic and diluted share.
• Q2 Adjusted EBITDA increased 4x to $5.6 million compared to $1.4 million.
• Net sales in July were up more than 60% compared to the same prior year period.

Management Commentary

"This quarter marked another period of significant growth for our company as we reported record-breaking sales and gross profit," said Lev Peker, CEO of CarParts.com. "In addition to our strong top-line momentum, we drove exceptional year-over-year bottom-line improvements in both net income and Adjusted EBITDA.

"Despite the ongoing pandemic and an uncertain market environment, our accelerated momentum points to the continued success of our strategy and resilience of our business. Overall e-commerce penetration for total U.S. retail sales reached 28% for Q2 while auto parts remains in the mid-single digits. We believe that the industry will continue to experience the shift to online and we are well-positioned to take advantage of this new demand over the long term.

"Following our strong growth and inclusion in the Russell 2000® Index this quarter, we decided that we needed a new name that better reflected the tech-forward company we have become. In late July we rebranded to CarParts.com, marking the culmination of our efforts to consolidate our websites over the past several quarters. In conjunction with the rebrand, we completed our site consolidation and are now officially down to one flagship website, CarParts.com. Being one brand with one site allows us to optimize our position in the market while being more efficient with our marketing and improving brand presence both online and offline.

"Our work over the past 18 months to optimize our supply chain, marketing and technology capabilities is paying off, however we still have plenty of work in these areas to take CarParts.com to the next level. We will remain prudent stewards of capital while continuing to drive further improvements in our business. We want to thank our warehouse associates for their hard work, as well as all of our team members for their support and commitment to the new CarParts.com."

For earnings history and earnings-related data on U.S. Auto Parts Network (PRTS) click here.