Advance Auto Parts fell short in its Q3 2024 earnings, reporting $2.1 billion in revenue, below analyst expectations of $2.65 billion and a year-over-year decline from $2.2 billion. EPS came in at a loss of $0.42, driven by continuing challenges in operational efficiency and store-level productivity. Comparable store sales also dipped by 2.3%, underscoring an ongoing struggle to drive growth amid sector pressures.
However, gross profit improved by 11% to $907.9 million, or 42.3% of sales, thanks to better pricing strategies. The company implemented an asset optimization program, planning to close 500 corporate stores, 200 independent locations, and four distribution centers by mid-2025, aiming to refocus on core retail operations. The recent $1.5 billion sale of Worldpac exemplifies Advance Auto’s efforts to streamline its portfolio.
Cash flow management…
Read More
