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Advance Auto Parts, Inc. has submitted its 10-Q filing for the quarterly period ended October 5, 2024.
The filing includes financial statements for the quarter, showing net sales of $2,147,991, a decrease from $2,218,205 in the same quarter the previous year. The decrease is attributed to a decline in comparable store sales and strategic pricing investments.
Gross profit for the quarter was $907,898, representing 42.3% of net sales, compared to 36.9% in the same quarter of the previous year. This increase was primarily due to stabilizing product costs and the absence of prior year inventory reserve adjustments.
Selling, general, and administrative expenses were $907,495, or 42.2% of net sales, compared to 40.4% in the same quarter of the previous year. The increase was due to wage investments and costs related to strategic initiatives.
The company reported a net loss from continuing operations of $25,363 for the quarter, compared to a loss of $74,186 in the previous year. The improvement was primarily due to lower costs and strategic pricing.
Net income from discontinued operations was $19,349, compared to $12,149 in the previous year, following the sale of the Worldpac business.
Cash provided by operating activities was $81,019, while cash used in investing and financing activities was $116,482 and $57,732, respectively.
The filing also details the completion of the sale of Worldpac for $1.5 billion, with net proceeds intended for general corporate purposes.
Advance Auto Parts announced a restructuring plan targeting the closure of approximately 500 stores and other facilities by mid-2025 to improve profitability.
The company identified a material weakness in its internal controls over financial reporting related to account reconciliations, which it is working to remediate.
Advance Auto Parts does not anticipate cash dividend payments to increase due to restrictions in its amended credit agreement.
The company continues to focus on operational improvements and strategic initiatives to enhance long-term profitability.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Advance Auto Parts Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.