Advanced Auto Parts On Thursday, it announced plans to close more than 700 locations in the U.S. as it seeks to improve its financial performance in the face of weak consumer demand.

The company announced plans to close 523 corporate stores, as well as 204 independent locations and four distribution centers, by mid-2025. The company also said it would reduce the number of employees but did not provide details.

This news came Thursday as Advance reported quarterly earnings that showed it was comparable. store sales decreased 2.3% in the third quarter and is facing increased expenses “due to salary investments in front-line team members, partially offset by a decrease in marketing expenses.”

Advance Auto Parts aims to improve operating income margin by more than 500 basis points by fiscal 2027 and expects total costs related to the restructuring to be between $350 million and $750 million.

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Advance Auto Parts plans to close more than 700 locations, including a mix of corporate and independent stores. (Tierney L. Cross/Getty Images / Getty Images)

Advance reported an adjusted loss per share of 4 cents in the third quarter; This figure was below the previous year’s loss of $1.19. He said this for the whole year 2024 earnings awaiting It will fall between a loss of 60 cents per share and breakeven.

Advance Auto Parts completed the sale of auto parts wholesaler Worldpac for $1.5 billion on Nov. 1.

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“We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and a comprehensive operational productivity review of our business,” CEO Shane O’Kelly said in a statement.

“We are charting a clear path forward and starting a new three-year era.” financial plan“By focusing on implementing core retail fundamentals to improve the efficiency of all our assets and create shareholder value,” he added.

Shares of Advance Auto Parts are down more than 28% last year and more than 32% so far in 2024, but are up about 2% on Thursday’s news.

Advance Auto Parts has not yet specified which locations it plans to close. (Universal Images Group/Getty Images via Jeffrey Greenberg/Education Images/Getty Images)

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Reuters contributed to this report.