Advance Auto Parts Q4 2023 Earnings Report
Key Takeaways
Advance Auto Parts reported a decrease in net sales and comparable store sales for the fourth quarter of 2023. The company experienced a significant decrease in gross profit and an operating loss, driven by business performance, inventory-related items, and elevated supply chain costs. Leadership changes and cost reduction initiatives are underway to improve performance.
Net sales decreased by 0.4% to $2.5 billion compared to the prior year.
Comparable store sales decreased by 1.4%.
Gross profit decreased by 11.9% to $950.8 million, or 38.6% of net sales.
Operating loss was $48.6 million, compared to an operating income of $119.3 million in the prior year.
Advance Auto Parts
Advance Auto Parts
Forward Guidance
Advance Auto Parts provided full year 2024 guidance, including net sales between $11.3 and $11.4 billion, comparable store sales growth between 0.0% and 1.0%, operating income margin between 3.2% and 3.5%, diluted EPS between $3.75 and $4.25, capital expenditures between $200 and $250 million and free cash flow minimum $250 million.
Positive Outlook
- Refining operational improvement plans.
- Building on decisive actions to turn around the company’s performance.
- Committed to improving overall productivity.
- Taking a disciplined approach to reducing expenses.
- Focusing on investing in team members.
Challenges Ahead
- Guidance is reflective of the steps we must take to reset the business.
- Solidify foundation for the long-term.
- Potential future acquisitions are not reflected.
- Potential future dispositions are not reflected.
- Share repurchases are not reflected.