Investing.com -- Advance Auto Parts, Inc. (NYSE: AAP) shares plunged 9.7% Thursday after the automotive parts retailer reported disappointing third-quarter results and slashed its full-year outlook. The company missed analyst expectations on both the top and bottom lines as it continues to grapple with operational challenges.
For the third quarter, Advance Auto Parts (NYSE:AAP) posted an adjusted loss per share of $0.04, falling well short of the $0.52 profit analysts had forecast. Revenue came in at $2.1 billion, below the $2.65 billion consensus estimate and down from $2.2 billion in the same quarter last year. Comparable store sales declined 2.3% YoY.
The company also cut its full-year guidance, now expecting fiscal 2024 adjusted earnings per share between a loss of $0.60 and breakeven. This is significantly lower than its previous outlook and the analyst consensus. Advance Auto Parts forecasts full-year revenue of approximately $9 billion, below the $9.69 billion analysts were projecting.
"We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and a comprehensive operational productivity review of our business," said Shane O'Kelly, president and CEO. "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."
As part of its turnaround efforts, Advance Auto Parts announced plans to close 523 corporate stores, exit 204 independent locations, and shutter four distribution centers by mid-2025. The company aims to improve its adjusted operating income margin by over 500 basis points through fiscal 2027.