On a post-earnings call, Advance CEO Shane O'Kelly said the macro environment was challenging and retailers were lowering expectations, but added the company was starting from a "lower baseline relative to the industry".
O'Kelly took charge last year to help the company through a turnaround amid pressure from activists investors who had urged Advance to offload Worldpac, a wholesale parts distribution business with a USD 2.1 billion revenue for the year ended June 30.
Advance had acquired Worldpac in 2014 when it bought General Parts International.
The company also cut its annual sales and profit forecasts on Thursday after bumpy demand for auto parts and expects headwinds related to maintenance deferrals and lower discretionary spending.
Wedbush analysts said they believe the company is facing higher costs to retain and attract employees.
Advance now expects its net sales in 2024 to be between USD 11.15 billion and USD 11.25 billion, down from its prior expectations of USD 11.3 billion and USD 11.4 billion.
The company expects annual profit per share to be between USD 2 and USD 2.50, compared with the prior forecast of USD 3.75 and USD 4.25.
The North Carolina-based company's financial performance and stock price have lagged behind rivals AutoZone and O'Reilly Automotive.
Its stock had tumbled around the time S&P Global Ratings downgraded its debt to "junk".
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