Advance Auto Parts cuts full-year profit guidance as costs weigh
(Reuters) – Advance Auto Parts Inc lowered its full-year profit outlook on Wednesday on the back of elevated costs, sending the auto parts retailer’s shares down 24% before the opening bell.
High raw material, labor and freight prices, along with the ongoing supply chain constraints, have weighed down the automotive industry’s production and distribution in recent months.
The company also cuts its full-year sales forecast and quarterly cash dividend.
“We expect the competitive dynamics we faced in the first quarter to continue, resulting in a shortfall to our 2023 expectations,” Chief Executive Officer Tom Greco said in a statement.
The…
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