Advance Auto Parts sees ‘headwinds’ from cooler, wet spring

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Advance Auto Parts Inc. AAP, +0.74% shares fell slightly more than 1% in the extended session Monday after the specialty retailer reported lower-than-expected adjusted profit in the first quarter. Advance Auto Parts earned $140 million, or $2.26 a share, in the quarter, compared with $186 million, or $2.81 a share, in the year-ago quarter. Adjusted for one-time items, the company earned $3.57 a share. Sales rose 1.3% to $3.4 billion. Analysts polled by FactSet expected adjusted earnings of $3.59 a share on sales of $3.4 billion. Advance Auto Parts said that sales were weaker in the final six weeks of the quarter, mostly thanks to “headwinds” from an expected lap of the DIY sales boost from the 2021 stimulus checks as well as a slower start to the spring selling season due to cooler temperatures and rainy weather. “These headwinds have subsided during the first four weeks of our second quarter with comparable sales growth within our full-year guidance range,” it said. The company kept its 2022 guidance intact, including expectations of sales between $11.2 billion and $11.5 billion, and adjusted per-share earnings between $13.30 and $13.85. Shares of Advance Auto Parts ended the regular trading day up 0.7%.

This article was originally published by Marketwatch.com. Read the original article here.

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