Advance Auto Parts plans to close hundreds of stores, four distribution centers and slash jobs amid the sluggish demand for vehicle parts, the company said this week.
The announcement came with the release of the company’s third-quarter report on Thursday, when it reported an adjusted loss of 4 cents per share, compared to a loss of $1.19 one year ago.
The car part supplier’s gross profit increased 11% in the third quarter this year compared to the nearly 37% increase in last year’s third quarter. Executives said the drop in profits will force the closure of more than 700 locations by the middle of 2025.
On a post-earnings call with analysts, Advance Auto Parts executives told analysts its quarterly results were also impacted by hurricanes and the CrowdStrike outage, Reuters reported.
The company said fewer consumers are opting to repair their cars, so it will introduce a new three-year financial plan in an effort to revive its struggling business.
How many Advance Auto Parts stores are there?
Headquartered in Raleigh, North Carolina, Advance Auto Parts operates more than 4,700 stores in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. According to its website, the company also serves 1,125 independently owned Carquest-branded stores across these locations, in addition to Mexico and some Caribbean islands.
“We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and a comprehensive operational productivity review of our business,” Shane O’Kelly, president and chief executive officer, said in a statement Thursday. “We are charting a clear path forward and introducing a new three-year financial plan, with a focus on executing core retail fundamentals to improve the productivity of all our assets and to create shareholder value.”
On Nov. 1, 2024, the company completed its previously announced sale of Worldpac for nearly $1.5 billion.