Advance Auto Parts announced that it is adjusting its financial guidance for 2021 to reflect increased expectations.
In its guidance provided in February, Advance said it expected full-year net sales between $10.1 billion and $10.3 billion. On April 20, the company said it now expects full-year net sales between $10.2 billion and $10.4 billion.
In February, Advance said it expected full-year comparable-store sales to increase between 1% and 3%. The company now expects comparable-store sales to increase between 2% and 4%.
Advance also increased its projections for new-store openings. In February, the company said it expected to open between 50 and 100 new stores. Now the company expects to open between 100 and 150 new stores.
Coinciding with the revised guidance, Advance announced that its board of directors approved an additional share-repurchase authorization of $1 billion, bringing the total available repurchase authorization to approximately $1.3 billion.
In addition, the board declared a quarterly cash dividend of $1 per share, an increase from 25 cents. This dividend is payable July 2, to shareholders of record as of June 18.
“In recognition of our 2020 results, strong financial position and confidence in our ability to deliver additional top- and bottom-line growth this year, the board has voted to significantly increase the quarterly dividend,” said Tom Greco, president and chief executive officer. “Across Advance, we remain focused on our financial priorities of maintaining an investment-grade rating, investing in the business and returning cash to shareholders. This increase in the quarterly cash dividend combined with the additional share repurchase authorization announced today reflects our commitment to a balanced approach to returning cash to shareholders. “Further, as we highlighted earlier this morning, we estimate comparable-store sales growth of 22% to 24% for the first quarter, including strength across both DIY omnichannel and professional. As a result of robust first-quarter estimates along with our previously announced expansion in California, we are updating our full-year guidance. Our team members and independent partners continue to care for our customers while executing on our long-term strategic initiatives. We are confident in our ability to deliver additional progress throughout the balance of the year.”