Advance Auto Parts
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
The complaint alleges that Advance Auto Parts and its defendants made false and misleading statements, failing to disclose several critical issues. These include misrepresenting the effectiveness of their strategic pricing initiative and the impact of price reductions, concealing the negative consequences of this initiative, providing an overly optimistic view of the company’s operations, and creating a false impression that inflation and macroeconomic factors had minimal effects on their margins.
The truth emerged on May 31, 2023, when the company reported disappointing Q1 2023 financial results. Despite previous guidance for improved operating margins in 2023, it was revealed that the company’s operating margin had plummeted to 2.6% in Q1, compared to 6% in the previous year. This decline was attributed to the strategic pricing program.
Furthermore, Advance Auto Parts provided a bleak outlook, particularly regarding their anticipated earnings per share (EPS). Initially, they expected a full-year EPS of $10.20 to $11.20, but due to reduced sales and strained margins, they revised it to only $6.00 to $6.50.
As profits dwindled, the company also slashed its quarterly dividend by 83%, reducing it from $1.50 to $0.25.
In response to this news, Advance Auto Parts’ stock plummeted by $39.31 per share, representing a staggering 35% decline in a single trading day.
