The president and CEO of Advance Auto Parts says while the automotive aftermarket isn’t immune to inflation, he believes it’s in a better position than most.
Tom Greco made the statement in a company press release prior to this morning’s earnings call for the second quarter of 2022. The company reported net sales increasing 0.6% to $2.7 billion and reported opening 43 new store and branch locations.
“While our industry is not immune to the inflationary pressures consumers and broader retail have been experiencing, we believe our industry is well positioned for the long-term within the broader retail space to withstand these headwinds,” Greco said. “In addition, our team continues to make progress on our strategic initiatives to drive long-term shareholder value. We remain relentlessly focused on customer service, parts availability and reliability of delivery. We’re confident this will help enable sustainable sales growth, margin expansion and strong cash returns.”
Here’s some of what Advance reported:
•Comparable store sales decreased 0.6%;
• Gross profit decreased 0.3% to $1.2 billion; Adjusted gross profit increased 4.2% to $1.3 billion;
•Gross profit margin decreased 40 basis points to 44.5% of Net sales; Adjusted gross profit margin increased 166 basis points to 48.0% of Net sales.
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