RICHMOND, Va. — Advance Auto Parts posted a 22 percent increase in first-quarter profit Thursday as sales improved and expenses fell. But the results were short of Wall Street expectations and shares tumbled.
The Roanoke, Va., seller of aftermarket auto parts and batteries earned $133.5 million, or $1.79 per share, for the three-month period ended April 21, up from $109.6 million, or $1.35 per share, a year ago.
Revenue rose 3 percent to $1.96 billion, but CEO Darren Jackson said there was a "meaningful slowdown in our sales trends in the month of April."
Sales at stores open at least a year rose about 2 percent. That's an important measure for retailers because it excludes results from newly opened or closed stores. Advance Auto Parts, which operates about 3,680 stores in the U.S., Puerto Rico and the Virgin Islands, opened 25 stores and closed five locations during the quarter.
Sales at stores open at least a year rose about 2 percent, but CEO Darren Jackson says there was a "meaningful slowdown in our sales trends in the month of April."
Analysts polled by FactSet expected a profit of $1.82 per share on revenue of $2 billion. It shares fell $12.60, or about 15 percent, to $69.50 in morning trading Thursday.
The company also cautioned of a slower second quarter but maintained its full-year profit forecast between $5.55 and $5.75 per share.
Advance Auto Parts has been focused on streamlining and simplifying its organization to reduce costs and minimize the impact to sales and service levels.
When vehicle sales tumbled a few years ago, auto parts retailers such as Advance Auto Parts got a sales boost, as more Americans kept their vehicles longer and invested more in keeping them running.
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Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum.