Advance Auto Parts on Aug. 15 reported second-quarter adjusted earnings per share of $1.58 – below the consensus estimate of $1.65 – and flat revenue of $2.26 billion compared to second-quarter 2016.
Advance’s stock plummeted 20 percent after the retailer reported its Q2 results.
Comparable-store sales were flat, and Advance said it expects comparable-store sales to be down between 1 percent and 3 percent for the full fiscal year.
“Our revised guidance for the year incorporates the impact of industry headwinds in the first half, which we expect to continue in the second half of the year, and we are taking the appropriate actions to adapt to this environment,” said Tom Greco, president and CEO. “We’ve now assembled a world-class leadership team that is executing our transformation plan to significantly drive growth and long-term shareholder value.”
The company attributed a 91-basis-point drop in gross operating margin to “the non-cash accounting impact of the planned inventory reduction as well as the increase in supply chain costs, unfavorable mix and commodity headwinds.”
