Advance Auto Parts Inc.'s fiscal first-quarter earnings rose 14 percent, with results topping analysts' expectations.
Auto-parts retailers are holding up well despite a recession that has made a basket case of most of the U.S. auto industry, as consumers put off buying new cars and do more of their own repairs. Still, the company has said it wants to rev up profits by renegotiating rents and moving or closing stores.
As the second-largest U.S. auto-parts retailer, Advance reported earnings of $93.6 million compared with $82.1 million a year earlier. The latest results included a 4-cent charge for store divestitures.
Sales for the quarter ended April 25 climbed 10 percent to $1.68 billion, helped by 114 new stores.
Same-store sales rose 8.2 percent, with sales to do-it-yourself customers up 4.4 percent and sales to commercial repair shops 17.5 percent. The company also said a calendar shift added about one percentage point to growth.
Gross margin rose to 48.8 percent from 47.5 percent. During the first quarter, Advance opened 46 stores, closed nine and moved three. As of April 25, the store count was 3,405.
“Our strong start to 2009 is traced directly back to our 49,000 Team Members,” said Darren R. Jackson, chief executive officer. “Our commitment and focus on the customer and our four strategies compel us to increase our investments to transform our business. Our commitment to our customers, confidence in our Team Members and our strong results allow us to move forward at an accelerated pace.”
In after-hours trading, Advance's shares were up 2.6 percent to $44. The stock, having risen more than 75 percent in the past six months, is now just below last September's high.
