Advance Auto Parts Inc. (NYSE:AAP) is facing a scorching sell-off, with shares plummeting in premarket trading, as a disappointing second-quarter earnings miss, a slashed FY24 outlook, and the announcement of its $1.5 billion Worldpac sale shake investor confidence.
The company reported earnings per share of 75 cents, missing the street view of $1.07. Quarterly sales of $2.683 billion beat the street view of $2.679 billion.
Revenues remained flat, while comparable store sales increased 0.4%. The company’s gross profit decreased by 2.3%, totaling $1.1 billion. The gross profit margin declined to 41.5% from 42.5% in the previous year’s second quarter. This drop was mainly due to strategic pricing investments and increased product costs.
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