01:57 PM EDT, 05/29/2024 (MT Newswires) -- Advance Auto Parts ( AAP ) on Wednesday posted a surprise decline in its fiscal first-quarter comparable-store sales amid weather and macro headwinds, sending the auto part retailer's stock tumbling.

Comparable-store sales fell 0.2% in 16 weeks through April 20, compared with Wall Street's expectations for a 0.2% gain. Earnings decreased to $0.67 a share from $0.81 a year earlier, while net sales fell 0.3% to $3.41 billion. Analysts polled by Capital IQ were looking for $0.63 and $3.43 billion, respectively.

The company's shares were down 10% in Wednesday afternoon trade.

"The year started off slower than anticipated across the industry," Chief Executive Shane O'Kelly said on an earnings conference call, according to a Capital IQ transcript. "We saw negative impact from weather, coupled with a challenged consumer who is experiencing diminished purchasing power, higher credit card debt and uncertainty about the balance of the year in terms of macro conditions."

Advance Auto is "well underway" with the process of selling Worldpac, a wholesale distributor of original equipment automotive parts, O'Kelly told analysts. "We are very pleased to have healthy interest, and we are looking to conclude the process before we report our second-quarter results." O'Kelly said the company will evaluate the potential sale of its Canadian business once the Worldpac sale is complete.

Advance Auto's indirect purchasing team is executing against the company's recently launched program to lower a minimum of $50 million on an annualized basis, O'Kelly said. The company is eyeing reduced indirect expenditures in technology, transportation costs, corporate contracts and other areas, and expects to see the bulk of the savings starting next year.

For the full-year, the company continues to expect EPS in a range of $3.75 to $4.25 on sales of $11.30 billion to $11.40 billion. The Street is looking for $3.76 and $11.35 billion, respectively. The company continues to see 2024 comparable-store sales between flat and up 1%, versus the Street's projection for a 0.5% gain.

"We believe that we will see pressure in (the second quarter) as the consumer will likely face continued uncertainty, impacting our top-line," Chief Financial Officer Ryan Grimsland said on the call. "In addition, we will be lapping last year's actions, which will cause margin rates to be significantly more challenged than (the first quarter)."

Separately, Advance Auto said it has appointed Bruce Starnes as chief merchant, effective June 24, succeeding Ken Bush, who will retire. Starnes most recently served as senior vice president of merchandising capabilities and operations at retailer Target (TGT).

Price: 63.46, Change: -6.73, Percent Change: -9.58