Advance Auto Parts Updates 2016 Key Assumptions; Commences CFO Transition

(RTTNews) - Advance Auto Parts, Inc. (AAP) said it now expects annual comparable store sales to be between negative 3% and negative 5%. The company no longer expects to achieve its annual Free Cash Flow assumption of a minimum of $500 million for fiscal 2016. The company said it is no longer targeting an adjusted operating income rate of 12% for fiscal 2016.

Total sales for the first quarter decreased 1.9% to $2.98 billion. The sales decline was driven by the comparable store sales decrease of 1.9% primarily due to availability and service shortfalls. As of April 23, 2016, the company operated 5,086 stores and 125 Worldpac branches and served approximately 1,300 independently owned Carquest stores.

First-quarter adjusted earnings per share were $2.51. These results exclude $0.11 of amortization of acquired intangible assets and integration and restructuring costs of $0.26, primarily associated with the acquisition of General Parts International, Inc.

Advance Auto Parts also announced that Mike Norona, CFO, will be leaving the company. Norona has agreed to remain in his current role until a successor has been named and will assist with an orderly transition. The company has commenced an external search for a new CFO.