By Emily Dattilo
Advance Auto Parts stock was higher on Thursday despite a tough earnings report. Wall Street decided to zero in on the car-parts retailer's plans for a makeover.
Shares gained 4.1% to $42.60. The stock is down 30% for the year.
"We are charting a clear path forward and introducing a new three-year financial plan, with a focus on executing core retail fundamentals to improve the productivity of all our assets and to create shareholder value," said CEO Shane O'Kelly in the earnings release.
The company said it has identified opportunities to bolster adjusted operating income margin by more than 5% through fiscal 2027.
The changes will be in store operations, including the closure of more than 500 corporate stores and over 200 independent locations; merchandising excellence, and supply chain.
The transformation plans accompanied disappointing results for Advance's third quarter, which ended Oct. 5.
The retailer reported an adjusted loss of 4 cents a share, sharply missing Wall Street's call for earnings of 49 cents, according to FactSet. Net sales of $2.15 billion; the consensus call was for $2.62 billion.
For fiscal 2024, Advance now expects adjusted earnings will range from a loss of 60 cents a share to break even, and sales of about $9 billion. Analysts had penciled in earnings of $2.14 and sales of $11.16 billion.
Write to Emily Dattilo at emily.dattilo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
November 14, 2024 11:50 ET (16:50 GMT)
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