SAN FRANCISCO, June 01, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Advance Auto Parts, Inc. (NYSE: AAP) investors who suffered substantial losses to submit your losses now.

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Advance Auto Parts, Inc. (NYSE: AAP) Investigation:

The investigation focuses on the accuracy of Advance Auto Parts’ statements concerning the demand for its products and the potential adverse impact of undisclosed sales practices.

On May 31, 2023, Advance Auto Parts announced disappointing Q1 2023 financial results. While management had guided for operating margin improvements in 2023, management revealed that in Q1 the company’s operating margin shrank to 2.6%, whereas it had an operating margin of 6% in the prior-year period. Management blamed the poor profitability on the company’s attempts to “narrow competitive price gaps” (i.e., lowering of pricing to divert sales away from competitors).

In addition, Advance Auto Parts provided a dim outlook, particularly with respect to the Company’s anticipated earnings per share (“EPS”). Previously, management expected full-year EPS of $10.20 to $11.20. But with diminished sales and a strained operating margin, management revealed it now anticipates EPS of only $6.00 to $6.50.

Moreover, with profits falling, the company cut its quarterly dividend by 83% from $1.50 quarterly to $0.25.

On this news, Advance Auto Parts’ stock dropped $39.31 per share, or 35% in a single trading day.

“We’re focused on investors’ losses and whether Advance Auto Parts misled investors about its sales strategy,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Advance Auto Parts and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding Advance Auto Parts should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AAP@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Contact:
Reed Kathrein, 844-916-0895