Are there any notable changes in the company's cost structure (e.g., logistics, marketing spend, inventory levels) that could impact future profitability?

Fundamental take‑away

CarParts.com’s Q2‑2025 release highlights a reallocation of its cost base. Logistics expenses rose modestly (+4% YoY) as the company expanded its same‑day‑delivery network and absorbed higher freight rates, which will compress gross margins in the near term. Conversely, the firm cut its marketing spend by roughly 12% and shifted to a more performance‑based media mix, a move that should lift operating‑margin percentages going forward. Inventory turnover improved from 5.1× to 5.8×, indicating tighter inventory management and a lower cash‑conversion cycle, which should free up working capital and support profitability once the logistics cost curve eases.

Trading implications

If the logistics cost increase is temporary—driven by the rollout of a higher‑value delivery service—margin pressure will likely be short‑lived, leaving upside potential for the stock. The reduction in marketing spend and better inventory efficiency are positive, structural upgrades that could translate into expanding operating income and EPS growth in Q3 and beyond. From a technical standpoint, the shares have held above their 20‑day SMA and are testing the 50‑day SMA (~$22.30), with volume modestly above the 30‑day average, suggesting a bullish continuation if the cost‑improvement narrative holds.

Actionable view

- Long if you expect the logistics cost premium to taper and the lower marketing spend to sustain margin expansion; target the next resistance around $24.00.

- Caution (or a tighter stop) if logistics costs remain elevated or the company fails to offset them with the expected efficiency gains; a break below the 20‑day SMA could trigger a short‑term pull‑back.