Advance Auto Parts Feels Squeeze of Lower Auto DIY Demand
Dow Jones
Aug 21
1221 ET - Fewer people are picking up DIY projects for their cars, and this is weighing on Advance Auto Parts' earnings. Same-store sales fell 0.5% in the quarter, where analysts expected a rise of 1.4%, and was mostly due to declining do-it-yourself and retail demand. Net sales edged down to $2 billion from $2.01 billion, missing expectations of growth to $2.04 billion. "In the DIY channel, sales declined more than we anticipated, particularly during the last four weeks, as tighter household budgets weighed on consumer spending," CEO Shane O'Kelly says in an earnings call. Shares are down 26% to $41.70.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.