By Denny Jacob
Advance Auto Parts Inc. posted higher sales but lower earnings in the fourth quarter as some headwinds eroded improvements in pricing, inventory and proprietary brand expansion.
The auto parts salesman reported profit of $81.7 million, or earnings per share of $1.30, compared with net income of $112 million, or earnings per share of $1.65, at same quarter a year ago. Adjusted earnings per share was $2.07. Analysts polled by FactSet had expected adjusted earnings per share of $1.97.
Revenue went from $2.36 billion to $2.4 billion. Analysts polled by FactSet expected $2.37 billion.
The company said adjusted gross profit margin was about 47% of net sales for the quarter, primarily due to improved pricing, inventory and owned brand expansion. But that was partially offset by ongoing inflationary costs, an unfavorable channel mix and the lapping of shrinkage benefits in the fourth quarter of the prior year.
“While we are still navigating uncertain times with respect to macro factors, including significant inflation, the investments we have made to differentiate our business will continue to provide a competitive advantage to Advance,” said the chief executive. Tom Greco in prepared remarks.
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