RALEIGH, N.C. - Advance Auto Parts , Inc. (NYSE:AAP) shares plunged 6.35% in premarket trading Thursday after the automotive parts retailer reported disappointing second quarter earnings and slashed its full-year outlook.
The company reported second quarter earnings per share of $0.75, missing analyst estimates of $0.94. Revenue came in slightly ahead of expectations at $2.68 billion, compared to consensus estimates of $2.67 billion. However, revenue was flat compared to the same quarter last year.
Comparable store sales increased a modest 0.4% YoY in Q2. Gross profit margin declined to 41.5% from 42.5% a year ago, which the company attributed to strategic pricing investments and higher product costs.
In a concerning development for investors, Advance Auto Parts significantly lowered its full-year 2024 guidance. The company now expects earnings per share of $2.00 to $2.50, well below the previous analyst consensus of $3.55. Full-year revenue is projected between $11.15 billion to $11.25 billion, also falling short of the $11.29 billion consensus estimate.
"Our team delivered positive comparable sales growth while navigating a challenging demand environment during the second quarter," said Shane O'Kelly, president and CEO. He noted the company is making progress on "decisive actions" to improve performance.
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