Advance Auto Parts (NYSE: AAP) stock opened about 8% lower on Tuesday after the Company reported lackluster second quarter earnings and sales.
The automotive parts retailer posted adjusted quarterly earnings of USD 2.00 per share, short of USD 2.22 per share expected by analysts. Advance said net sales rose 0.2% compared to the year-quarter prior to USD 2.3 Billion. Analysts called for sales of USD 2.4 Billion for the period.
Sales at Advance Auto Parts stores open at least a year remained flat during the period ended July 13.
Tom Greco, Advance Auto Parts President and Chief Executive Officer said the Company had a “challenging” second quarter, but it continues to make progress. During the first half of 2019, net sales climbed 1.6% to USD 5.3 Billion, while comparable sales rose 1.5%. Adjusted EPS grew 9.6% during the period to USD 4.46.
“We are confident that despite short-term headwinds in the second quarter, which caused volatility in our financial results, we will deliver meaningful progress against our transformation plan in 2019,” Chief Financial Officer Jeff Shepherd said in a statement.
For the full year, Advance now expects net sales to range between USD 9.650 Billion and USD 9.750 Billion, down from its previous forecast of up to USD 9.800 Billion. The Company is also calling for same-store-sales growth of 1.0% to 2.0%, down from its prior forecast of up to 2.5%.
Shares of Advance Auto Parts have lost 11% this year versus competitors like O’reilly Automotive (NASDAQ: ORLY), up 8%, and AutoZone (NYSE: AZO), up 27%.