Advance Auto Parts
said Thursday that its second-quarter earnings fell 4.5% as results were hurt by higher expenses.
The company earned $62.9 million, or 59 cents a share, in the quarter, compared with $65.9 million, or 60 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 58 cents a share.
Second-quarter revenue increased 8.3% to $1.11 billion, in line with Wall Street's target. Same-store sales, or sales at locations open at least one year, rose 1.2% in the quarter.
"Our sales for the quarter were disappointing," the company said. "We believe that sales are being impacted unfavorably by macroeconomic conditions that have reduced our customers' discretionary income, and second quarter sales compared to a strong 9.0% comparable-store increase last year.
Advance Auto Parts also recorded higher selling, general and administrative expenses, which increased to 37.6% of sales from 36.1% last year. The company said it had a loss of leverage on fixed costs due to softer-than-expected sales, and it also had higher costs for fuel and insurance.
For the third quarter, the company expects to earn 50 cents to 55 cents a share. The company sees earnings of $2.10 to $2.20 a share for the full year.
Analysts anticipate earnings of 56 cents a share in the third quarter and $2.22 a share for the full year.
The company's shares recently were trading at $30, up $1.05, or 3.6%.
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