Advance Auto Parts Inc. (AAP) recently announced the appointment of Jim Durkin as the President of Autopart International (a segment of Advance auto). The company looks up to the new President for accelerating growth and expanding Autopart International keeping in terms with the company’s overall commercial strategy, thereby ensuring success and improved profitability from the segment.
Before joining Advance auto, Mr. Durkin played the role of Executive Vice President at Global Sales Department of OfficeMax Incorporated (OMX). He has also served as the Senior Vice President in Field Sales Department for the same company previously. Even prior to OfficeMax, Mr. Durkin worked as Vice President of Sales for ARAMARK Corporation.
Headquartered in Roanoke, Virginia, Advance Auto operates in the U.S. automotive aftermarket industry and is primarily engaged in selling replacement parts (excluding tires), accessories, maintenance items, batteries and automotive fluids for cars and light trucks. It is the second leading retailer catering to the Do-It-Yourself (DIY) and Do-It-For-Me (DIFM or Commercial) customers.
The company primarily targets the DIY segment, which accounts for 75% of the revenue; the remaining 25% is generated from the DIFM under the commercial delivery program.
The company has partnered with PartsAmerica.com to provide online shopping facilities. Advance Auto has grown through acquisition of several retail chains such as Western Auto Supply, Missouri; Discount Auto Parts, New Jersey; Carport Auto parts, Alabama & Mississippi; Trak Auto Corp, Maryland; and Autopart International, Massachusetts. The company’s key competitors include AutoZone Inc. (AZO) and O’Reilly Automotive Inc. (ORLY).
AutoZone is focused on expansion of its Hub store, accelerating its store maintenance initiative and strengthening its commercial sales force. Besides, its aggressive share repurchase policy supported by a strong cash flow is also worth mentioning.
Hence, the company retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating and we stick to our long-term Neutral recommendation on the shares of the company keeping in tune.
ADVANCE AUTO PT (AAP): Free Stock Analysis Report
AUTOZONE INC (AZO): Free Stock Analysis Report
OFFICEMAX INC (OMX): Free Stock Analysis Report
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