Jump to content

  • Welcome to Auto Parts Forum

    Whether you are a veteran automotive parts guru or just someone looking for some quick auto parts advice, register today and start a new topic in our forum. Registration is free and you can even sign up with social network platforms such as Facebook, X, and LinkedIn. 

     

Advance Shakes Up Executive Team, Launches Strategic Review


Recommended Posts

rssImage-c85b0cba6a008bdf028f7d4d1e0802a6.jpeg

Advance Auto Parts announced a shakeup of its leadership team on Aug. 23, as the company reported flat second-quarter sales and a steep drop in earnings and operating income.

Shane O’Kelly, who has served as the CEO of Home Depot subsidiary HD Supply since 2020, will take over as president and CEO effective Sept. 11.

Outgoing CEO Tom Greco, who announced his planned retirement in February, “will stay on as an advisor to ensure a seamless transition,” according to the company. Greco has served as president and CEO since April 2016.

Prior to joining Home Depot, O’Kelly was the CEO of PetroChoice, the nation’s largest distributor of lubricants and lubrication solutions. O’Kelly, 54, served as a captain in the U.S. Army in the 1990s and earned an MBA from Harvard Business School, along with a bachelor’s degree from the U.S. Military Academy at West Point.

link hidden, please login to view
Shane O’Kelly (photo courtesy of the Home Depot)

Gene Lee, interim executive chair for Advance, spoke highly of O’Kelly during the company’s second-quarter conference call.

“We talked to a lot of people, and by far Shane was the best person for this role,” Lee said. “ … I think that he is a car enthusiast. He has sold into the channel before. He loves the business, and I think his leadership style is perfect for where we are in our journey and what we need.”

Lee noted that a number of good candidates were bound by non-compete agreements. 

“But even so, when it was all said and done, Shane O’ Kelly was by far our best candidate for this role in the current situation,” Lee said. “He is well-educated, [has a] strong, disciplined background, and he’s a thoughtful human being with a real focus on customers.”

Advance also named Tony Iskander as interim chief financial officer, effective Aug. 18. Iskander succeeds Jeff Shepherd, who departed from Advance, effective Aug. 18.

Iskander has more than 25 years of finance and accounting experience and served as the company’s senior vice president, finance and treasurer since 2020. Prior to joining Advance in 2017, he spent more than a decade at Hillrom, where he held various finance roles of increasing responsibility.

Advance said a search for a permanent CFO is underway, with the help of a leading executive-search firm.

“We thank Jeff for his contributions and wish him the best in his future endeavors,” Lee said in a news release. “Advance is fortunate to have a seasoned executive in Tony to assume the CFO role on an interim basis. I am very confident that Tony will lead the finance team through a seamless transition and work closely with Advance’s new CEO when Shane officially joins in September.”

Coinciding with the leadership shakeup, Advance announced that the company is launching “a comprehensive operational and strategic review.”

“We’re executing a number of operational improvements including inventory-optimization initiatives, improving asset productivity across the enterprise, investments in our front-line organization to reduce turnover and disciplined cost controls, which we expect to benefit the cost structure and working capital while strengthening Advance for the long term,” Lee said during the conference call. “However, we know there’s more work to be done, and the team is focused on building on these actions and looking for ways to drive even stronger performance and enhanced value.”

On Aug. 23, Advance reported second-quarter net sales of $2.7 billion, up 0.8% over second-quarter 2023. Comparable-store sales ticked 0.6% lower on a year-over-year basis.  

Second-quarter diluted earnings per common share were $1.43, down from $2.38 in second-quarter 2022. Operating income was $134.4 million, down from $201.7 million in second-quarter 2022.

“Coming into the quarter, we knew Q2 was going to be challenging and that the investments we’re making in both inventory to help improve availability and strategic pricing to maintain competitive price targets would build through the year,” Greco said during the conference call. “ … We delivered net sales growth in the quarter. However, the balance of our Q2 financial metrics remain challenged. As [Lee] noted, while we’re executing some operational improvements, there are further actions that need to be taken to accelerate profitable growth.”

The post

link hidden, please login to view
appeared first on
link hidden, please login to view
.

link hidden, please login to view

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Similar Topics

    • By NAPA
      Brad Sweet and the
      link hidden, please login to view No. 49 team were poised to take on a busy week of High Limit Racing action, but Tuesday night’s event at Davenport Speedway in Iowa was rained out. That left two nights at I-70 Speedway in Odessa, Mo., on the schedule, and an opportunity for Sweet and the NAPA team to showcase their skills to fans and competitors alike. At the Rayce Rudeen Foundation event opener Friday night at I-70, Sweet posted the sixth-quickest time overall in qualifying with a lap of 13.768 seconds on the half-mile dirt oval. The Big Cat then dominated his heat race, taking the checkered flag and securing his spot in the FK Rod Ends Dash. With the help of his daughter Savannah, Sweet drew the third starting spot for the seven-lap dash to set the field for the evening’s feature. The NAPA driver held his ground to finish third, then lined up third for the feature. Sweet was able to pick up a spot in Friday’s main event. He crossed the line in the runner-up position.
      On Saturday night, Sweet was already locked into heat race competition thanks to his podium finish on Friday. The NAPA No. 49 was second across the line after starting fourth in the heat race. Sweet kept the energy level high in Saturday’s dash and finished third. The NAPA team went on to battle hard against tough competition in the main event. After a late-race caution, Sweet spun the tires on the restart and fell back to fifth. He maintained that position when the checkered flag flew.
      Despite the rain-out at Davenport, Sweet and the NAPA Auto Parts No. 49 team extended their points lead with the runner-up and top-five finishes. Sweet now leads the standings with a solid, 65-point advantage over second place. Eagle Raceway, a favorite from the 2023 season, is next on the schedule with a $55,000-to-win event.
      Start / Finish:
      Friday, June 7: 3 / 2
      Saturday, June 8: 3 / 5
      Points Standing / Total: 1st / 1,540 pts. (+65)
      Next Race: Tuesday, June 11, Eagle Raceway, Eagle, Nebraska
      How to Watch or Listen: 
      link hidden, please login to view NAPA: 
      link hidden, please login to viewBrad Sweet:  link hidden, please login to view
      Kasey Kahne Racing:  link hidden, please login to view The post
      link hidden, please login to view appeared first on link hidden, please login to view.
      link hidden, please login to view
    • By Counterman
      link hidden, please login to viewannounced the launch of its Schaeffler Fun-in-the Sun 10K Follower Facebook Giveaway. The promotion celebrates the latest milestone for the Schaeffler REPXPERT USA & CAN Facebook page: reaching 10,000 followers. During the promotion, which continues through June 20, 2024, Schaeffler followers can earn a summer swag bundle filled with promotional items by liking the giveaway post, tagging three people in the comments and following the Facebook page, the company said.
      “We are excited to celebrate this milestone with our followers,” said Mark Roach, marketing manager, Schaeffler Automotive Aftermarket Americas North. “The Fun-in-the-Sun promotion is a great way for us to engage with our community and show our appreciation for their support.”
      The Fun-in-the-Sun theme is intended to create excitement for the Summer of 2024. Promotional items include a Weber Grilling Kit, YETI cooler, JBL speaker and Ray-Ban Aviators.
      Additionally,
      link hidden, please login to view encourages people to register for a REPXPERT account. The company said members get access to exclusive technical information, training materials and special offers. “The REPXPERT platform is designed to provide automotive professionals with valuable resources and support,” Roach added. “By registering, users can enhance their skills and stay informed about industry trends and new product launches.”
      The post
      link hidden, please login to view appeared first on link hidden, please login to view.
      link hidden, please login to view
    • By Counterman
      link hidden, please login to viewannounced that Ken Bush, senior vice president, chief merchant, will retire from the company after nearly 20 years and be succeeded by Bruce Starnes, who has been named executive vice president, chief merchant, effective June 24, 2024. The 48-year-old Starnes will lead all aspects of merchandising strategy. He joins 
      link hidden, please login to view from the Target Corporation where he spent nearly 20 years in a variety of product management roles. According to the company, he most recently served as senior vice president, merchandising capabilities and operations. Previously, he served as president of Target India and vice president, digital solutions and partnerships. “We are very grateful for the many contributions Ken has made to our industry over the past 37 years. He has helped strengthen our merchandising operations and built a talented team within the merchandising organization, making it an optimum time to make a leadership transition. We wish him all the best in his upcoming, well-deserved retirement,” said Shane O’Kelly, Advance’s president and CEO. “I’m excited to welcome Bruce to the Advance family. As a seasoned and accomplished merchandising executive with more than 25 years of experience, Bruce brings a deep understanding of successful merchandising operations and vendor partnerships as well as a proven track record of results at one of the world’s leading retail organizations. I look forward to working closely with him to take our merchandising operations to the next level.”
      The post
      link hidden, please login to view appeared first on link hidden, please login to view.
      link hidden, please login to view
    • By Advance Auto Parts
      RALEIGH, N.C.--(BUSINESS WIRE)-- Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers, today announced that Ken Bush, senior vice president, chief merchant, will retire from the company after nearly 20 years and be succeeded by Bruce Starnes, who has been named executive vice president, chief merchant, effective June 24, 2024.
      Mr. Starnes, 48, who will lead all aspects of merchandising strategy, joins Advance from the Target Corporation where he spent nearly 20 years in a variety of product management roles of increasing responsibility. Most recently, he served as senior vice president, merchandising capabilities and operations, where he was responsible for the strategy, capability and execution of Target’s merchandising operations, including price and promotions, in-store presentation, sales plans, negotiations, partnerships and vendor experience. Previously, he served as president of Target India and vice president, digital solutions and partnerships.
      “We are very grateful for the many contributions Ken has made to our industry over the past 37 years. He has helped strengthen our merchandising operations and built a talented team within the merchandising organization, making it an optimum time to make a leadership transition. We wish him all the best in his upcoming, well-deserved retirement,” said Shane O’Kelly, Advance’s president and CEO. “I’m excited to welcome Bruce to the Advance family. As a seasoned and accomplished merchandising executive with more than 25 years of experience, Bruce brings a deep understanding of successful merchandising operations and vendor partnerships as well as a proven track record of results at one of the world’s leading retail organizations. I look forward to working closely with him to take our merchandising operations to the next level.”
       

      link hidden, please login to view
    • A-premium Auto Parts:5% OFF with Code GM5.
    • By Advance Auto Parts
      RALEIGH, N.C.--(BUSINESS WIRE)-- Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers, announced its financial results for the first quarter ended April 20, 2024.
      “Our team continues to execute against our decisive actions, including commencing our supply chain consolidation and making meaningful progress toward the potential sale of Worldpac,” said Shane O’Kelly, president and chief executive officer. “While the industry experienced a slower start to 2024 compared with our expectations, the actions we began in the back half of last year will help us streamline our operations for the long term. Our leadership team and I continue to focus on improving the core fundamentals of our business while reducing costs, which is reflected in our year-over-year SG&A reduction. As previously announced, we are reinvesting a portion of the savings back into the foundation of our business, including frontline compensation and training. We also made progress on our other decisive actions, including beginning three of our DC to market hub conversions.
      “We continue to work on improving our overall performance by removing complexities and distractions to increase our value proposition and deliver shareholder value. We recognize we still have significant work ahead of us, however the actions we're taking will put us on the path to delivering improved results. I want to thank all our team members for their continued commitment to serving our customers as we navigate through this pivotal year for Advance.”
      First Quarter 2024 Results (1,2)
      First quarter 2024 net sales totaled $3.4 billion, a 0.3% decrease compared with the first quarter of the prior year. Comparable store sales decreased 0.2%.
      The company's gross profit decreased 2.2% to $1.4 billion. Gross profit margin of 42.0% decreased 82 basis points compared with the first quarter of the prior year. This was primarily driven by increased costs that were not fully covered by pricing actions. These were partially offset by supply chain productivity.
      SG&A expenses were $1.3 billion, which improved to 39.4% of net sales compared with 39.9% in the first quarter of 2023. This was primarily driven by the cost control efforts initiated at the end of 2023, including reduced corporate expenditures from the decrease in headcount and significant reduction of marketing expenses as well as a net gain on asset sales. These were partially offset by the reinvestment in field wages and training as well as typical expense inflationary pressure.
      The company's operating income was $86.0 million, or 2.5% of net sales, compared with 2.9% in the first quarter of 2023.
      The company's effective tax rate was 33.2%, compared with 28.5% in the first quarter of 2023. The higher effective income tax rate was due to a discrete charge for share-based compensation. The company's diluted EPS was $0.67 compared with $0.81 in the first quarter of 2023.
      Net cash provided by operating activities was $2.7 million through the first quarter of 2024 versus $382.5 million of cash used in operating activities in the same period of the prior year. Free cash flow through the first quarter of 2024 was an outflow of $46.3 million compared with an outflow of $472.5 million in the same period of the prior year.
      Capital Allocation
      On May 21, 2024, the company declared a regular cash dividend of $0.25 per share to be paid on July 26, 2024 to all common stockholders of record as of July 12, 2024.
      __________________________________ (1) All comparisons are based on the same time period in the prior year. Comparable store sales include locations open for 13 complete accounting periods and exclude sales fulfilled by distribution centers to independently owned Carquest locations.
      (2) As reported in the company’s fourth quarter and full year 2023 earnings release, the company corrected non-material errors in certain previously reported financials. All comparisons are based on the corrected historical results as presented in the company’s prior earnings release dated February 29, 2024.
       

      link hidden, please login to view

×
  • Create New...