Advance Auto Parts stock up as it launches strategic review and names new chief executive

Advance Auto Parts Inc.
AAP,
+3.12%
stock rose 6.2% in premarket trades on Wednesday after the retailer said it’s launching an operational and strategic review of its business. It also named Shane O’Kelly, who most recently worked as chief executive of Home Depot Inc.’s
HD,
+0.50%
HD Supply unit, as its new chief executive while Tom Greco plans to retire. Advance Auto Parts said it now expects 2023 same-store sales to fall within the range of a 0.5% decline to a 0.5% gain. Back in May, the company expected a range of a 1% drop to flat performance. The company cut its 2023 earnings estimate to $4.50 to $5.10 a share, from its earlier view of $6 to $6.50 a share, compared to the FactSet consensus estimate of $5.89 a share. The company cited strength in its professional business but said it faces headwinds from “ongoing commitment to maintain competitive price targets, impacts from a shift in channel mix and investments in our team.” The company’s second-quarter profit of $1.43 a share missed the analyst view of $1.66 a share, while its sales rose 0.8% to $2.67 billion, slightly ahead of the estimate of $2.66 billion.