Advance Auto Parts CEO Darren Jackson To Retire; Cuts 2015 Comparable EPS View

(RTTNews) - Advance Auto Parts Inc. (AAP) said that its board has appointed President George Sherman to the additional role of interim Chief Executive Officer, effective January 3, 2016, the beginning of the Company's next fiscal year. Sherman will succeed Darren Jackson who will retire as Chief Executive Officer and step down from the Board on January 2, 2016, after more than 11 years with the Company, including the last eight years as CEO. Separately, the company said it cut its full year 2015 comparable cash earnings per share outlook.

"Given our third quarter earnings shortfall coupled with continuing integration headwinds and the soft start to our lowest volume fourth quarter, we are revising our full year comparable cash EPS down to $7.75 to $7.90," said Mike Norona, Executive Vice President and Chief Financial Officer.

The company lowered its full year 2015 comparable cash earnings per share guidance to a range of $7.75 to $7.90 from the prior estimate of $8.10 - $8.30 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $8.28 per share for fiscal year 2015. Analysts' estimates typically exclude special items.

The revised outlook assumes flat to slightly negative fourth quarter comparable store sales, roughly flat year over year fourth quarter gross margin rate and achievement of our full year synergies estimate of between $45 million and $55 million for the full year.

Sherman joined Advance Auto Parts as President in April 2013, and has been responsible for growing the business and driving excellence throughout the Company's operations.Sherman has led the Company's Commercial Sales, Field Operations, Merchandising, Marketing, Supply Chain and IT Teams. Prior to joining Advance Auto Parts, Sherman served as Senior Vice President, Best Buy Services, for Best Buy Co. Previously, Sherman led Home Depot's installation business as Senior Vice President and President of the Home Services Division, as well as serving as Senior Vice President, Operations. Prior to Home Depot, Sherman spent 15 years at Target Corp., where he progressed from Store Manager to Regional Vice President to Senior Vice President. Previously, he served as an officer in the United States Air Force for seven years.

The Company also announced that effective immediately current Board Chairman John Brouillard will become Executive Chairman. In this role, Brouillard will continue to provide Board leadership and work closely in an advisory capacity with Sherman as the Company continues to implement its long-term strategy. The Board also named Board Member John Ferraro to take on the role of Lead Independent Director.