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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.
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The retailer reported a surprise third-quarter loss of 10 cents per share, versus expectations by analysts polled by Visible Alpha of 52 cent profit per share.
Advance Auto Parts (AAP) said Thursday that it plans to close hundreds of stores as the auto parts retailer recorded a surprise quarterly loss.
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The company’s shares surged as much as 10% soon after the market open, as investors cheered the news, although its stock is down by over a quarter this year.
As part of a new three-year turnaround plan, the company intends to reduce its U.S. footprint by shuttering 523 Advance corporate stores, exiting 204 independent locations, and closing four distribution centers.
“We are charting a clear path forward and introducing a new three-year financial plan, with a focus on executing core retail fundamentals to improve the productivity of all our assets and to create shareholder value,” Chief Executive Officer (CEO) Shane O’Kelly said in a statement.
The retailer reported an unexpected third-quarter loss of 10 cents per share, versus expectations by analysts polled by Visible Alpha of 52 cent profit per share.
Net sales fell to $2.1 billion, down from $2.2 billion the prior year, and also lagging forecasts of $2.67 billion.
Advance Auto Parts said it expects full-year net sales from continuing operations of around $9 billion.
The retailer’s shares are down more than 30% this year.
