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advanced auto parts announced plans on Thursday to close more than 700 stores in the United States, aiming to improve performance amid weak consumer demand.
The company announced plans to close 523 corporate stores, 204 independently owned stores and four distribution centers by mid-2025. The company also announced that it would reduce its workforce, but did not provide details.
The news was announced as the company announced its quarterly results on Thursday. Over-the-counter sales The company declined 2.3% in the third quarter, facing an increase in expenses “due to wage investments in front-line team members, partially offset by lower marketing expenses.”
Advance Auto Parts aims to increase its operating margin by more than 500 basis points by fiscal 2027 and expects to incur total costs related to the restructuring between $350 million and $750 million.
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Advance Auto Parts plans to close more than 700 stores, including corporate and independent stores. (Tierney L. Cross/Getty Images/Getty Images)
In the third quarter, Advance reported an adjusted loss of 4 cents per share. This was down from a loss of $1.19 in the year-ago period. Regarding the full year of 2024, he said the following: Earnings can be expected It should fall between a loss of 60 cents per share and breakeven.
On November 1, Advance Auto Parts completed the sale of auto parts wholesaler Worldpac for $1.5 billion.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| AAP | Advance Auto Parts Co., Ltd. | 41.20 | +0.26 |
+0.64% |
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“We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and the comprehensive operational productivity review of the business,” CEO Shane O'Kelly said in a statement.
“We are charting a clear path forward and introducing a new three-year plan. financial plan“We are focused on implementing our core retail fundamentals to improve productivity across all our assets and create shareholder value,” he added.
Advance Auto Parts stock, which has fallen more than 28% over the past year and is down more than 32% year-to-date in 2024, rose about 2% in Thursday trading on the news.
Advance Auto Parts has not yet announced which stores it plans to close. (Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images/Getty Images)
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Reuters contributed to this report.
