Advance Auto Parts Projects Comp Growth With Demand From DIY, Pro Shoppers
Amid formidable demand from DIY shoppers and professional customers, Advance Auto Parts said it anticipates comparable-store sales growth to be between 22 percent and 24 percent for the first quarter of 2021, according to a Tuesday (April 20) announcement.
The aftermarket auto parts retailer expects the adjusted operating income margin rate to be between 8.5 percent and 8.7 percent. Moreover, Advance Auto Parts anticipates the GAAP operating income margin rate to be between 7 percent and 7.2 percent.
“We continue to see strong demand from both DIY omnichannel and professional customers, with robust sales growth to start 2021,” President and Chief Executive Officer Tom Greco said in the announcement.
Greco noted that the current external environment is benefiting the company’s sector. Those factors include a positive effect from the government stimulus, a gradual recovery in miles driven as the economy opens again and good weather. He also added that “the focused effort of our team members to execute key initiatives is helping to accelerate top and bottom-line performance,” and that he is “confident that our strategic actions and investments over the past several years will further deliver on our transformation objectives throughout 2021.”
Advance ran 4,806 shops and 170 Worldpac locations in the U.S., Puerto Rico, U.S. Virgin Islands and Canada. In addition, the firm works with 1,277 independently owned Carquest branded locations in the aforementioned places, as well as the British Virgin Islands, Turks and Caicos, the Bahamas, Grand Cayman and Mexico.
Separately, AutoZone recently said that net sales surged by 15.8 percent in the second quarter of fiscal 2021 as it grew its store count. The retailer reported that domestic same-store sales increased by 15.2 percent for the quarter.
In addition, CarParts.Com reported as part of its financial results that net sales soared by 90 percent year over year in the fourth quarter of 2020, which encompassed an extra week, from the year-ago quarter.