Advance Auto Parts plunges 20% on weaker outlook

By Retail FOXBusiness

Car buying ice age as consumers buy more SUVs, trucks?

FBN's Jeff Flock talks to Woody Woodring, of Woody Buick GMC, about the higher demand for SUVs and trucks over cars.

Advance Auto Parts (AAP) shares plunged on Tuesday after the car parts retailer cut its 2017 outlook and warned of ongoing retail challenges.

Continue Reading Below

The company reported second-quarter earnings of $87.0 million, a 30% drop compared to the same period a year ago. Per-share earnings came in at $1.17. On an adjusted basis, earnings fell to $1.58 a share, missing estimates for $1.67.

Revenue matched expectations at $2.26 billion, a 0.3% improvement. Same-store sales, a measure of performance by stores open at least a year, were flat for the quarter.

CEO Tom Greco said industry headwinds that negatively impacted the first half will likely continue through the second half of 2017.

As a result, Advance Auto Parts plans to open about 10 fewer stores and expects same-store sales to fall 1% to 3%. Wall Street expected a smaller decline of 0.5%, according to FactSet.

More from FOX Business

Shares dropped as much as 20% early in the session and hit a new 52-week low. The stock slipped 18.9% to $88.59 in recent trading, extending its losses on the year to 47.9%.

What do you think?

Click the button below to comment on this article.