By Ben Fox Rubin
Advance Auto Parts Inc.'s (AAP) third-quarter profit fell 15% as
the auto-parts retailer posted weaker same-store sales, though
margins improved amid lower costs.
The company last month forecast third-quarter results below
expectations as sales weakened and Advance Auto again cut its
annual earnings guidance.
The second-largest U.S. auto-parts retailer after AutoZone Inc.
(AZO) has said it expects its performance will be hurt for the rest
of the year by continued softness in colder weather markets and
lower overall consumer spending on auto maintenance and parts, as
well as spending to expand its commercial sales.
"While we are disappointed we did not achieve our profitability
expectations, we are encouraged by the improvements in our sales
trends, particularly in commercial, from our second to third
quarter," Chief Financial Officer Mike Norona said.
The company reported a profit of $89.5 million, or $1.21 a
share, compared with a year-earlier profit of $105.6 million, or
$1.41 a share. Sales edged down 0.5% to $1.46 billion, as
same-store sales fell 1.8%.
Analysts polled by Thomson Reuters expected earnings of $1.21 a
share on $1.46 billion in revenue.
Gross margin widened to 49.8% from 49.5%, as input costs shrank
1.1%.
Shares of Advance Auto, which affirmed its full-year earnings
view, closed Wednesday at $79.76 and were inactive premarket. The
stock is up 15% so far this year.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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