Advance Auto Parts, a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items, has reported a 7 percent rise in total sales for the second quarter of 2009.
The sales increase reflected the net addition of 82 new stores in the past 12 months and a comparable store sales increase of 4.8 percent during the quarter compared to an increase of 2.9 percent during the second quarter last year, said the company.
The comparable store sales gain was comprised of a 14.8 percent increase in commercial sales and a 0.7 percent increase in do-it-yourself (DIY) sales. This compares to a 13.5 percent increase in commercial and a 0.8 percent decrease in DIY during the second quarter last year.
The company's gross profit rate was 49.3 percent of sales in the second quarter as compared to 47.4 percent in the prior year, which reflects a 189 basis-point improvement. The 189 basis-point improvement was primarily due to continued investments in pricing capabilities, merchandising capabilities and parts availability, decreased inventory shrink and better store execution resulting from the impact of previous changes to align team member incentives, the company said.
Mike Norona, executive vice president and CFO, Advance Auto Parts, said: "We are pleased with our sixth consecutive quarter of double-digit Commercial comparable sales growth, our second consecutive quarter of positive DIY comparable sales in over three years, as well as the strong gross profit rate improvement which fueled an increase in our operating income rate of over 50 basis-points before the impact of store divestitures."
