Advance Auto Parts, Inc. (NYSE:AAP) reported earnings Tuesday, which sent its stock swooning.
The Raleigh, North Carolina company told investors its net sales for the second quarter of 2019 were $2.3 billion, a 0.2% increase versus the second quarter of the prior year. Comparable store sales for the second quarter of 2019 were flat.
Adjusted gross profit margin was 43.3% of net sales in the second quarter of 2019, a 42-basis-point decrease from the second quarter of 2018. The decrease was primarily driven by channel and product mix, in addition to planned supply chain wage investments in the second quarter.
The company's adjusted operating income was $196.4 million in the second quarter of 2019, a decrease of 4.3% versus the second quarter of the prior year. Adjusted operating income margin declined to 8.4% of net sales for the second quarter, a decrease of 40 basis points compared to the second quarter of the prior year.
On a GAAP basis, the company's operating income was $170.8 million, 7.3% of Net sales, an increase of 12 basis points from the second quarter of 2018.
According to CEO Tom Greco, "While the second quarter was challenging, we continue to make progress, including building a differentiated Customer Value Proposition in both Professional and DIY Omnichannel in addition to driving productivity for the long term.
"We remain committed to our disciplined approach to increasing comparable store sales, expanding margins and delivering significant cash flow in the back half of 2019."
Share prices retreated $5.09, or 3.6%, to $137.02
