Why Advance Auto Parts Stock Reversed This Week
Automotive parts retailer Advance Auto Parts' (NYSE: AAP) CEO Shane O'Kelly has his work cut out for him. The stock's 17.8% decline in the week to Friday morning is the latest disappointment for a stock down 62% over the last decade compared to a 490% rise at AutoZone and a 625% increase at O'Reilly Automotive over the same period.
As previously noted, second-quarter earnings saw a severe contraction in profit margins due to the increased costs of implementing its strategic plans (which now include selling its Worldpac business for $1.5 billion to shore up the balance sheet) and higher product costs.
Image source: Getty Images.
Source Fool.com
