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