Shares of Advance Auto Parts tumbled Thursday after the auto-parts retailer reported that same-store sales decreased in the second quarter as consumers cut back on spending.
Advance Auto Parts stock dropped 15% to $47.51 in premarket trading on Thursday after ending Wednesday down 1.4%. AutoZone and O'Reilly Automotive were down 1.7% and 1.9%, respectively.
The company posted second-quarter adjusted earnings of $1.03 a share, up from 69 cents a year ago and above Wall Street expectations of 81 cents. Net sales totaled $2 billion, slightly missing the analyst consensus call for $2.04 billion and running flat from $2.01 billion a year ago.
Advance Auto Parts said that tariff refunds contributed about 31 cents a share to its adjusted earnings.
Same-store sales decreased 0.5% and came in below Wall Street's forecast for same-store sales to rise 1.4%. Management said in the earnings release that the decrease reflected low-single-digit growth in the company's professional segment.
"Total enterprise sales performance was impacted by the DIY channel as tighter household budgets constrained spending more than we anticipated, especially during the last four weeks of the quarter," said CEO Shane O'Kelly.
Advance Auto Parts stock had risen 43% this year heading into the opening bell on Thursday.