ADVANCE AUTO PARTS INC (AAP): restructuring charge — Advance Auto Parts Q3 loss $0.42 EPS; announces closure of ~500 stores, 200 independent sites, 4 DCs by mid-2025

ADVANCE AUTO PARTS INC

Q3 net sales $2.1B (down from $2.2B YoY, comp store sales -2.3%); diluted loss per share $0.42; adjusted loss $0.04.
Gross margin 42.3% (vs 36.9% YoY) driven by lapping inventory reserve change and stabilizing product costs.
Board approved restructuring: close ~500 corporate stores, ~200 independent locations, 4 DCs by mid-2025; estimated total costs $350M-$750M.
Completed sale of Worldpac for ~$1.5B cash on Nov 1, 2024.
New FY2027 targets: ~7% adjusted operating margin, ~2.5x debt leverage; dividend maintained at $0.25/share payable Jan 24, 2025.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

ADVANCE AUTO PARTS INC announced a restructuring with charges of approximately $350 million to $750 million affecting approximately 500 stores, approximately 200 independent locations and four distribution centers.

Type: restructuring
Charge: approximately $350 million to $750 million
Affected area: approximately 500 stores, approximately 200 independent locations and four distribution centers

Exact text from the filing

centers, including asset-related charges, lease termination fees and other incremental costs to exit facilities. The Company currently estimates that it will incur approximately $350 million to $750 million of total costs, including (a) cash costs consisting of (i) approximately $45 million of involuntary and voluntary severance costs and benefits, (ii) a range of

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2 restructurings & charges filed in the last 30 days. Browse all restructurings & charges →

ADVANCE AUTO PARTS INC filing history →

Source: SEC EDGAR

accession 0001158449-24-000236

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