Advance Auto Parts Closing 700+ Stores, Slashes Outlook After Surprise Quarterly Loss

Nov 14, 2024, 04:19 PM

Advance Auto Parts Inc. announced plans to close more than 700 locations, including 523 company-owned stores, 204 independently owned locations, and four distribution centers by mid-2025, in an effort to shore up the company's finances amid sluggish demand. The decision, which could impact up to 10,000 employees, was revealed during the company's third-quarter update to investors. Advance Auto Parts reported a surprise quarterly loss of $0.04 per share, compared to analysts' expectations of earnings of $0.52 per share, with revenue of $2.15 billion falling short of the expected $2.67 billion. The company has reduced its financial outlook and now guides initial fiscal year 2025 revenue between $8.4 billion and $8.6 billion. Advance Auto Parts operates more than 4,700 stores across nearly every state.