Second-quarter profits decline at Advance Auto
- August 9, 2012
Roanoke-based Advance Auto Parts reported second-quarter earnings per diluted share of $1.34, down 8.2 percent from
the same period last year.
Year-to-date earnings per share, however, were $3.14, an increase of 12.5 period over the first six months of the previous fiscal year.
“As we anticipated, our second quarter faced weak consumer demand in both DIY (Do It Yourself) and Commercial which
resulted in our performance coming in at the low end of our outlook. The most significant slowdown was within our
cold weather markets, principally in the Northeast and Great Lakes regions of the U.S.,” Darren R. Jackson,
the company’s president and CEO, said in a statement.
“We remain encouraged by our positive comp store sales growth during the last period of our quarter, as well as the long-term fundamentals of our industry. As we look to the balance of the year we continue to focus on growing Commercial and competing more effectively through investments in areas such as
Hub and inventory upgrades, our Commercial Sales Force and the launch of the new Advance Commercial Credit program.”
Total sales for the second quarter ending July 14 decreased 1.3 percent to $1.46 billion, compared with total sales of $1.48 billion
during the second quarter of fiscal 2011.
The sales decrease reflected a comparable store sales decrease of 2.7 percent versus a comparable store sales increase of 2.5 percent during the second quarter of fiscal 2011.
Year-to-date, total sales increased 1.2 percent to $3.42 billion, compared with total sales of $3.38 billion over the same period last year.
“While we are not satisfied with our second quarter performance, resulting from weaker consumer demand, we remain committed to our strategic investments in commercial and availability as they are foundational to our future growth,” Mike Norona, executive vice president and chief financial officer said in a statement. “Given the continued softness in our business trends, we believe it’s prudent to be cautious in our outlook for both sales and profitability for the balance of the year. As a result, we now anticipate our fiscal 2012 comparable store sales to be flat to slightly downand our EPS to be in the range $5.25 to $5.35 per share.”