Increased sales have led to a bigger year-to-date gross margin for Advance Auto Parts, Inc. The auto parts retailer recently reported the good news to its investors and announced the company's financial results for the second quarter ended July 14, 2007.
Earnings per diluted share for the second quarter were $0.64, compared to $0.59 last year, an 8.5 percent increase. In the second quarter, sales increased to $1.17 billion from $1.11 billion last year. Comparable-store sales increased 1.3 percent in the quarter, comprised of a 0.1 percent decrease in do-it-yourself (DIY) and a 5.8 percent increase in do-it-for-me (DIFM). The 1.3 percent comparable-store sales increase compares to a 1.2 percent increase in last year's second quarter.
"For the second quarter, our comp store sales increase was at the lower end of our low single digit guidance range, which was consistent with our sales trend in the first quarter," says Jack Brouillard, the company's chairman, president and CEO. "Our earnings per share of $0.64 came in slightly below our $0.65 to $0.69 guidance."
Second quarter gross margin was 48.1 percent of sales, a 51 basis point improvement compared to last year's quarter, primarily reflecting improved procurement and logistics costs.
Second quarter selling, general and administrative (SG&A) expenses were 38.0 percent of sales, compared to 37.6 percent in second quarter 2006, a 41 basis point increase. This increase was primarily due to a 50 basis point loss of leverage on rent, depreciation and other fixed costs from modest comparable-store sales.
Year to date sales increased to $2.64 billion from $2.50 billion last year. Year to date comparable-store sales increased 1.2 percent comprised of a 0.1 percent decrease in do-it-yourself (DIY) and a 5.4 percent increase in do-it-for-me (DIFM). The year to date 1.2 percent comparable-store sales increase compares to a 2.7 percent increase last year. Year to date earnings per diluted share were $1.35, compared to $1.27 last year.
Year to date gross margin was 48.2 percent of sales, a 55 basis point improvement compared to last year.
Year to date selling, general and administrative (SG&A) expenses were 38.7 percent of sales, compared to 38.2 percent in 2006, a 44 basis point increase. This increase was primarily due to a 60 basis point loss of leverage on rent, depreciation and other fixed costs from modest comparable-store sales.
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