.August 23, 2024 02:40:28 AM

Advance Auto Parts, Inc. (NYSE:AAP) faced challenges in the second quarter, falling short of market expectations. Despite cost reduction efforts, the company struggled with profit margins, prompting concerns about its restructuring plans. J.P. Morgan lowered AAP’s price target to $55, reflecting doubts about its financial recovery. In Q2, Advance Auto Parts reported $2.68 billion in revenue, $44.99 million in net income, and $1.11 billion in gross profit. With a pre-tax income of $62.09 million and an income tax expense of $17.10 million, the company faces hurdles in managing expenses effectively. Strategic decisions, like selling WorldPac, are crucial for its future success.