(Boursier.com) — Advance Auto Parts fall of nearly 30% before market on Wall Street, while the American group lowered its profit forecast for the year due to high costs. The auto parts retailer is suffering from the impact on the industry of high prices for raw materials, labor and freight, as well as ongoing supply chain constraints. The group also lowered its sales forecast for the full year and its quarterly dividend. “We expect the competitive momentum we faced in the first quarter to continue, resulting in a shortfall from our 2023 expectations,” Chief Executive Tom Greco said. The Delaware group now forecasts net sales of between $11.2 billion and $11.3 billion for 2023. Earnings per share are expected between $6 and $6.5, compared to $10.2 and $11.2 previously!
Despite the price actions, the group suffered from headwinds in supply and an unfavorable product mix. For the first quarter, it posted a profit of $0.72 per share, against $2.26 last year. Sales were $3.42 billion for the quarter ended April 23, up 1.3%. Advance Auto Parts finally lowered its quarterly dividend to provide greater financial flexibility and declared a dividend of $0.25 per share, down from the $1.50 announced in February.
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