Advance Auto Parts to Close More Than 500 Stores Amid Falling Profits

WASHINGTON - Advance Auto Parts announced plans Thursday to shut down over 500 stores across the U.S. over the next three years due to disappointing sales, marking a significant reduction in its retail presence. The decision follows a third-quarter report revealing a $6 million loss, as the company’s performance fell short of Wall Street expectations.

The North Carolina-based auto parts retailer reported a quarterly loss of 10 cents per share, or 4 cents per share after adjustments for one-time items. Analysts surveyed by Zacks Investment Research had anticipated earnings of 52 cents per share.

In addition to store closures, approximately 204 independent franchise locations will lose their affiliation with Advance Auto Parts and transition to independent operations. Four distribution centers are also slated for closure.

Year-to-date, the company’s stock has dropped 33%, with a 27% decline over the past 12 months. Advance Auto Parts, which operates nearly 4,800 stores, projects a full-year revenue of $9 billion, below initial expectations. Revenue for the third quarter totaled $2.15 billion, again missing Wall Street estimates of $2.67 billion.

The company has not released a full list of locations to be closed, instead directing inquiries to investor data available from its recent earnings call.