v3.25.4
Segment Information
12 Months Ended
Jan. 03, 2026
Segment Information  
Segment Information

Note 11 – Segment Information

The Company operates as a single reportable 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.