By Dhirendra Tripathi
Investing.com – Advance Auto stock (NYSE:AAP) fell more than 2% Tuesday as the company warned of inflation while reducing its guidance for new store openings and capital spending for the year.
The company raised its outlook for annual sales, saying it had incorporated “higher than planned inflation headwinds."
The auto parts retailer now expects to open at least 30 stores in the year. With the company’s financial year closing in less than three months, that’s a sharp climb down from the guidance of 80 to120 new store openings it had given in August. That guidance was revised from the previous forecast of 100 to 150 new store openings.
The company now plans capital spending of at least $275 million, lower than the August forecast of $300 million to $350 million.
Net sales for the third quarter rose 3.1%, to $2.6 billion, and beat estimates, driven by continued recovery in the company's professional business.
Comparable store sales also rose 3.1%.
Adjusted profit per share of $3.21 was higher than estimates.
Net sales for the year are now seen at around $10.93 billion, up from the previous forecast of $10.7 billion at midpoint.