Advance Auto Parts To Close 731 Stores Amid Asset Optimization Program; Sees FY25 Revenue Below View

(RTTNews) - Following the completion of a comprehensive review of operational productivity, Advance Auto Parts on Thursday announced an Asset Optimization Program targeting the reduction of 523 advance corporate stores, exiting 204 independently owned locations and closing four distribution centers by mid-2025.

The company is executing a strategic plan to improve business performance and has identified opportunities that it believes can improve adjusted operating income margin by more than 500-basis points through fiscal 2027 with a focus on core retail improvements.

Looking ahead to fiscal 2025, the company expects net sales in a range of $8.4 billion to $8.6 billion, with comparable sales growth of 0.5 to 1.5 percent.

On average, six analysts polled by Thomson Reuters expect the company to report sales of $9.23 billion for the year. Further ahead to fiscal 2027, the company now projects net sales of about $9.0 billion, with comparable sales growth in the low-single-digits.