Advance Auto Parts has announced its financial results for the second quarter ended July 18, 2015, as well as plans to close 50 stores.
Total sales for the second quarter increased 1 percent to $2.37 billion, as compared with total sales during the second quarter of fiscal 2014 of $2.35 billion. The sales increase was driven by the addition of new stores over the past 12 months and a comparable store sales increase of 1 percent, partially offset by changes in Advance’s independent store count.
“I would like to thank all our team members for their hard work during the second quarter of 2015,” said Darren Jackson, CEO. “Our second quarter comparable store sales increased 1 percent and comparable cash EPS grew 9.1 percent to $2.27. These results were in-line with our expectations given the continuing demands of the General Parts integration. Our integration continues to be on-track overall along with our sales and profitability.”
The company’s comparable operating income was $285.5 million during the second quarter, an increase of 8.7 percent versus the second quarter of fiscal 2014. As a percentage of sales, comparable operating income in the second quarter was 12. percent compared to 11.2 percent during the second quarter of fiscal 2014. On a GAAP basis, the company’s operating income during the second quarter of $257 million increased 6.8 percent versus the second quarter of fiscal 2014.
The company is maintaining its full-year guidance for comparable cash EPS of $8.10 to $8.30. As part of its on-going process of store evaluations, the company has identified, and is subsequently planning to close 50 stores in the latter part of 2015 in line with the company’s accelerated efforts to achieve its 12 percent comparable operating profit target in 2016. The one-time expense impact of these closures is expected to be between $16 million and $20 million in 2015. This effectively increases the 2015 full-year estimates for one-time expenses from the original outlook of $75 million to $85 million disclosed in the company’s fourth quarter 2014 earnings release to now be between $91 million to $105 million.