Advance Auto Parts Inc. ( AAP ) shares are trading lower in the morning session on Wednesday.

The company reported first-quarter earnings per share of 67 cents, beating the street view of 64 cents.

Net sales totaled $3.406 billion in the first quarter of 2024, a 0.3% decrease from the prior year’s first quarter. Comparable store sales decreased 0.2%. Sales missed the analyst consensus of $3.425 billion.

“While the industry experienced a slower start to 2024 compared with our expectations, the actions we began in the back half of last year will help us streamline our operations for the long term,” said Shane O’Kelly, president and chief executive officer. 

The company’s gross profit decreased 2.2% to $1.4 billion. Gross profit margin of 42.0% declined 82 basis points year over year.

Advance Auto Parts’ operating income was $86.0 million, or 2.5% of net sales, compared with 2.9% in the year-ago period.

“As previously announced, we are reinvesting a portion of the savings back into the foundation of our business, including frontline compensation and training,” O’Kelly added. 

Free cash flow through the first quarter of 2024 was an outflow of $46.3 million compared with an outflow of $472.5 million in the same period of the prior year.

The company exited the quarter with cash and equivalents worth $451.003 million. Advance Auto Parts ( AAP ) has long-term debt of $1.787 billion.

Dividend: Advance Auto Parts ( AAP ) declared a regular cash dividend of $0.25 per share to be paid on July 26 to all common stockholders of record as of July 12.

Outlook: Advance Auto Parts ( AAP ) reaffirmed 2024 EPS expectation Of $3.75-$4.25 versus the $3.82 consensus.

The company sees net sales of $11.3 billion- $11.5 billion (prior $11.3 billion-$11.4 billion) versus $11.349 billion consensus.

Advance Auto Parts ( AAP ) also announced that Ken Bush, senior vice president, chief merchant, will retire after nearly 20 years and be succeeded by Bruce Starnes, who has been named executive vice president, chief merchant, effective June 24, 2024.

Price Action: AAP shares are trading lower by 10.4% to $62.88 at last check Wednesday.