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Dec 30, 2023
Advance Auto Parts Q4 2023 Earnings Report
Advance Auto Parts reported a decrease in net sales and gross profit compared to the prior year, with an operating loss for the quarter. The company is focused on stabilizing the business and returning to profitable growth.
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.