Advance Auto Parts is closing more than 700 locations to shore up the company’s finances following another dismal earnings report.
The car parts retailer, which has about 5,000 stores, said Thursday that the closures are part of its “strategic plan to improve business performance.” Advance Auto Parts (AAP) shares slid nearly 5% in premarket trading after it reported earnings that missed analysts’ expectations.
The reduction will result in closing roughly 500 corporate-owned stores plus about 200 independently operated locations. The company did not immediately provide a full list of locations set to close. The national retailer has 259 stores throughout Georgia.
Advance Auto Parts also lowered its full-year outlook for the second quarter in a row, with the company saying on its previous earnings call that “consumers continue to feel the weight of an uncertain macroeconomic climate.”
The nearly century-old chain has been engaged in a turnaround plan for the past year as it tries to return to profitability and reverse sliding sales. It recently sold Worldpac, an automotive parts wholesaler, for $1.5 billion as part of “simplification” of its business model.