Advance Auto Parts Stock Sinks on Soft Q1 Sales Projections

Key Takeaways

Advance Auto Parts ( AAP ) shares sank Wednesday after the auto retailer's lackluster sales projections for the first quarter outweighed solid fourth-quarter results.

The company reported $2.00 billion in sales in the final quarter of 2024, down slightly year-over-year but better than analysts polled by Visible Alpha had expected. Advance Auto Parts recorded an adjusted loss of $1.18 per share as comparable store sales declined by 1%, both also better than consensus.

The retailer's current-quarter projections came in lower than expected. Advance Auto Parts sees Q1 sales around $2.5 billion with a 2% comparable sales decline, while analysts expected $2.61 billion and a 0.51% decline, respectively.

JPM Calls Report 'Mixed Bag,' With 2025 'More Back-Half Weighted'

JPMorgan analysts said in a note following the report that the results and projections amounted to a "mixed bag with very low visibility and more back-half weighted, as expected."

Last November, Advance Auto Parts announced a turnaround plan that included the closing of more than 700 total company-owned and independent stores.

Shares of Advance Auto Parts were down nearly 13% Wednesday and have lost about a third of their value over the past year to hover near decade-plus lows.

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