Group 1: Company Performance - Advance Auto Parts (AAP) has experienced a significant impact on sales due to planned store closures, resulting in a reduction of approximately $700 million in net sales over the past 12 months [3] - Pro-forma revenues for 2024 are projected to be between $8.2 billion and $8.4 billion, with a potential net sales reduction of $600 million to $800 million [3] - The DIY segment is under pressure from financial strains on consumers, leading to decreased discretionary purchases, although essential maintenance in the automotive industry remains a necessity [4] Group 2: Capital Expenditure and Growth Strategy - The company is increasing capital expenditure to support business growth, with plans to spend at least $300 million in 2025 on new stores, supply chain enhancements, and technology updates [5] - Investments will focus on essential maintenance projects, including roofing, HVAC, and system upgrades, which may limit near-term cash flow [5] Group 3: Competitive Landscape - Price competition is a significant concern for AAP, as it competes with national and regional automotive retailers, including AutoZone and O'Reilly Automotive, as well as facing challenges from online competitors [6] - The company anticipates continued pressure in its DIY business segment due to these competitive dynamics [6]

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Advance Auto Parts, Inc. (AAP) is an automotive replacement parts provider. The Zacks Consensus Estimate for its current year earnings has been revised 107.4% downward over the last 60 days.Albany International Corp. (AIN) is an industrial materials company. The Zacks Consensus Estimate for its current year earnings has been revised 12.9% downward over the last 60 days.CDW Corporation (CDW) is an information technology (IT) solutions ...

Jason Hall has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool. ...

Advance Auto Parts plans to close 523 corporate stores, exit 204 independently owned locations and close four distribution centers in the United States by mid-2025 as it works to boost its operational productivity.The automotive aftermarket parts provider operates 4,781 stores primarily within the United States and serves 1,125 independently owned Carquest-branded stores, it said in a Thursday (Nov. 14) press release.The announcement followed the company’s sale of its wholesale operation, Worldpac, which wa ...

Financial Data and Key Metrics Changes - Net sales from continuing operations were $2.1 billion, a 3% decrease compared to Q3 last year, with comparable store sales declining 2.3% due to consumer spending softness and external events [12][9] - Gross profit from continuing operations was $908 million, representing 42.3% of net sales, an improvement of approximately 540 basis points year-over-year, primarily due to stabilization of product costs [14] - Adjusted operating income from continuing operations was $16.7 million, or 0.8% of net sales, compared to negative 3.3% last year, with adjusted diluted loss per share from continuing operations at $0.04 compared to a loss of $1.19 in the prior year [15] Business Line Data and Key Metrics Changes - Both pro and DIY channels experienced low single-digit declines, with pro performing relatively better; average ticket growth was positive in both channels [13] - Strength was noted in categories such as batteries, filters, and engine management, while discretionary categories saw weaker sales [13] Market Data and Key Metrics Changes - The U.S. vehicle market continues to grow, with over 280 million cars on the road, and nearly 85% of those vehicles are at least four years old, indicating a strong demand for auto parts and maintenance [24] - Economic uncertainty is impacting consumer sentiment, which the company is planning for in its business strategy [24] Company Strategy and Development Direction - The company aims to achieve an adjusted operating margin of approximately 7% by the end of fiscal 2027, driven by improvements in merchandising, supply chain transformation, and store efficiency [6][23] - A thorough assessment of operational productivity has identified opportunities to improve profitability, including store footprint optimization and a focus on core retail fundamentals [22][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q3 results were below expectations due to macro headwinds and specific events like hurricanes and system outages, but expressed confidence in the strategic actions being taken [9][16] - The leadership team emphasized the importance of returning to customer-first principles and embedding industry-best practices to drive performance [25][20] Other Important Information - The successful completion of the Worldpac sale added $1.5 billion of liquidity to the balance sheet, providing a strong cash position exceeding total debt [31][71] - The company plans to close over 500 non-performing stores and exit relationships with more than 200 independent locations to optimize its asset base for long-term growth [38][41] Q&A Session Summary Question: Long-term outlook on reinvestment and vendor financing - The company confirmed it is maintaining a target of $2.8 billion in vendor financing capacity and plans to reinvest approximately $300 million annually in capital expenditures, factoring in inflation and cost savings [83][84]

The action in Advance Auto Parts, Inc. AAP has some investors and traders confused. The company released its earnings report Thursday and it was well short of estimates.But the shares are trading higher. This is why it is our Stock of the Day.The company reported a loss of four cents per share. This was well below the Street's estimates of a profit of 49 cents. The revenue was also well short of estimates. It came in at $2.15 billion. Analysts were looking for $2.65 billion.But sometimes the headlines don't ...

Advance Auto Parts said Thursday it will close about 500 stores by mid-2025 and cut some jobs under a restructuring effort, as demand for vehicle parts takes a hit from fewer consumers opting to repair their cars.Shares of the auto parts retailer were up about 2% despite also reporting a surprise third-quarter adjusted loss of 4 cents per share.Analysts on average were expecting a profit of 49 cents, according to data compiled by LSEG.Advance Auto Parts said demand for vehicle parts takes a hit from fewer c ...

Advance Auto Parts, Inc. (AAP) reported an adjusted loss of 4 cents per share for the third quarter of 2024 as against the Zacks Consensus Estimate of earnings of 52 cents. The company had incurred an adjusted loss of 82 cents in the year-ago quarter.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.Advance Auto generated net revenues of $2.1 billion, which missed the Zacks Consensus Estimate of $2.67 billion. Comparable store sales decreased 2.3% year over year. We projected a ...

F/ADVANCE AUTO PARTS Q3 2024 RESULTS & THREE YEAR FINANCIAL PLAN NOVEMBER 14 | 2024 Forward Looking Statements and Non-GAAP Certain statements herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast, "guidance," "intend," "likely," "may," "plan," "position," "possible," "potential," "probable," "project," "should," ...

KEY TAKEAWAYSAdvance Auto Parts shares surged after the auto retailer announced plans Thursday to close hundreds of stores as it posted a surprise quarterly loss. As part of a new three-year turnaround plan, the company intends to reduce its US footprint by shuttering 523 Advance corporate stores, exiting 204 independent locations, and closing four distribution centers.The retailer reported a surprise third-quarter loss of 10 cents per share, versus expectations by analysts polled by Visible Alpha of 52 cen ...