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Advance Auto Parts announced it will be closing around 700 locations across the country after posting a quarterly loss and missing revenue forecasts by $520 million. In addition, same-store sales dipped 2.3%. It will also be shuttering four distribution centers and laying off an undisclosed number of employees.
The company said the closures will include roughly 500 corporate-owned stores and 200 locations that are independently run. It did not provide a list of which underperforming stores that will be closing.
The car parts retailer, which has around 5,000 locations, also announced plans to open 30 new stores in the 2025 fiscal year.
While shares slid in early market trading, they recovered and were trading about two-and-half percent higher by mid-afternoon.
Advanced Auto Parts joins a number of retail chains that are struggling to survive in the harsh economic conditions, including Big Lots, Espirit, True Value Company, and American Freight, which recently filed for bankruptcy and will close all of its stores across the country.