Advance Auto Parts Inc. (NYSE:AAP) saw its shares drop sharply after the Virginia-based company posted weaker-than-expected second quarter earnings.
The after-market auto parts provider reported a fall in net income to US$87.0mln, or US$1.17 a share, down from US$124.6mln, or US$1.68 a share a year earlier.
Advance Auto Parts’ second quarter adjusted earnings per share were US$1.58, below the consensus forecast for US$1.65, although same-store sales were flat versus expectations of a decline of 0.2%.
But the company said it is now expecting its full-year same-store sales to fall by 1% to 3%, wider than the consensus decline forecast of 0.5%, and it expects to open 60 to 65 new stores this year.
Advance Auto Parts’ chief executive, Tom Greco said: “Our revised guidance for the year incorporates the impact of industry headwinds in the first half, which we expect to continue in the second half of the year and we are taking the appropriate actions to adapt to this environment."
In pre-market trading in New York, Advance Auto Parts’ shares were 13% lower at US$95, having already dropped 35% in the year-to-date.
In the regular session they plunged over 20% to $87.08.