Advance Reports Sales Down in 2016
Feb. 21, 2017—Advance Auto Parts announced that total sales were down from $9.74 billion in 2015 to $9.57 billion in 2016.
The company's gross profit rate was 44.5 percent of sales for fiscal 2016 as compared to 45.4 percent for fiscal 2015. Advance says the decrease was primarily driven by previously capitalized supply chain costs flowing through the income statement and reducing gross profit as a result of the planned reduction of inventory levels.
Total sales for the fourth quarter of 2016 increased 2.4 percnet to $2.08 billion, as compared with total sales during the fourth quarter of fiscal 2015 of $2.03 billion. The sales increase was driven by the comparable store sales growth of 3.1 percent, inclusive of the positive impact of the year-over-year comparable benefit from holiday timing and new store and Worldpac branch openings partially offset by the store closures and Carquest store consolidations.
The company's gross profit rate was 43.6 percent of sales during the fourth quarter, as compared to 44.7 percent during the fourth quarter last year.
“We are pleased with the sequential improvement in our sales performance and positive comparable sales for the quarter," said Tom Greco, president and CEO of Advance. "Our top line progress is a direct reflection of sustained investment in the customer. Our stronger sales execution and improved availability enabled us to serve our customers better."