Investors responded negatively after Advance Auto Parts said it was on track to reach its 2027 goals during a fourth-quarter earnings call on Wednesday.
The aftermarket automotive parts provider announced a restructuring plan in November 2024, which included the closure of around 700 stores and four distribution centers.
O’Kelly said the company brought talented executives on board and was focusing hard on providing faster access to auto parts for all of its customers across its network.
Advance Auto Parts said it also intended to shut down four distribution centers with the goal of merging its remaining centers into 12 large facilities by the end of 2026.
The restructuring plan also involves launching 60 smaller market hub locations by mid-2027, optimizing transportation routes, improving distribution speed, and increasing the speed of opening new stores, the company said.
“We remain committed to delivering an improved operating performance in 2025 and making progress toward our FY27 goal of achieving an adjusted operating margin of approximately 7 percent,” O’Kelly said.
Q4 earnings were down 0.9 percent from last year, owing to a re-evaluation of existing stock value and disappointing liquidation sales at closing locations.
The company also said it had closed 40 stores and opened 42 new ones in 2024.
The stores are located in major metro areas in Alabama, Arizona, Arkansas, California, Florida, Georgia, Kansas, Louisiana, Michigan, Mississippi, North Carolina, Texas, Washington, and Wisconsin.
Notable cities include Corpus Christy, Fort Myers, McAllen, Mesa, New Orleans, and Phoenix.
Buyers have time until March 13 to place their bids for these properties.
Advance Auto Parts is headquartered in Raleigh, North Carolina, and has stores in the United States, Canada, Puerto Rico, and the U.S. Virgin Islands.