Advance Auto Parts lowers outlook for the year as DIY business hit by inflation, high fuel prices

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Advance Auto Parts Inc. AAP, +0.29% stock fell more than 6% in the extended session Tuesday after the auto-parts retailer reported mixed second-quarter results and lowered its outlook for the year. Advance Auto Parts said it earned $144 million, or $2.39 a share, in the quarter, compared with earnings of $177 million, or $2.76 a share, in the year-ago period. Adjusted for one-time items, Advance Auto Parts earned $3.74 a share. Sales rose 0.6% to $2.66 billion, the company said. Analysts polled by FactSet expected adjusted earnings of $3.76 a share on sales of $2.75 billion. The retailer lowered its sales outlook for 2022 to between $11 billion and $11.2 billion, down from a previous expectation of sales between $11.2 billion and $11.5 billion. It called for adjusted 2022 EPS between $12.75 and $13.25, compared with a prior expectation of adjusted EPS between $13.30 and $13.85 for the year. Its do-it-yourself business was “particularly challenged” in the quarter, and high inflation and “significant” fuel price increases “will continue to pressure DIY consumers in the back half of the year,” Advance Auto Parts said in a statement. “While our industry is not immune to the inflationary pressures consumers and broader retail have been experiencing, we believe our industry is well positioned for the long-term within the broader retail space to withstand these headwinds,” the company said. Advance Auto Parts ended the regular trading day up 0.3%

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