Thu, Aug 22, 8:05 PM (145 days ago)
For the second quarter ended July 13, 2024, Advance Auto Parts reported net sales of $2.68 billion, a slight decline of 0.1% year-over-year, with comparable store sales increasing by 0.4%. Gross profit margin decreased by 93 basis points to 41.5%, impacted by higher product costs and pricing strategies. Selling, general and administrative (SG&A) expenses rose to 38.9% of sales, primarily due to increased labor costs, resulting in operating income of $71.8 million, down from $126 million in the prior year. Net income fell to $45 million, translating to diluted earnings per share of $0.75, compared to $1.32 in Q2 2023. Cash flow from operations improved to $87.8 million, while cash used in investing activities decreased to $79.6 million. The company announced plans to sell its Worldpac business for $1.5 billion, expected to close in Q4 2024, aiming to use proceeds for operational improvements and debt repayment. Despite challenges, the company is focused on strategic initiatives to enhance performance and mitigate risks associated with economic factors and industry competition.