Bapcor shares slide on recent sales slowdown
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More news: Bapcor shares fell in morning trade after the auto parts supplier saw sales slump over the last eight weeks.
Shares were down 1.7% to $5.10 by 11:10am AEDT.
Citi analysts said the company "appears to be executing well" on its cost-cutting program.
However, they see potential for consensus earnings downgrades, with Bapcor's 0.7% increase in quarterly sales implying a slowdown of 3.7% in the last eight weeks, compared to growth of 7.7% reported in the first five weeks of the quarter.
Bapcor posts Q1 revenue rise, confirms FY25 savings targets
The news: Auto parts supplier Bapcor has confirmed that its operational improvement program — including headcount reductions — remains on track to deliver up to $30 million in savings in the 2025 financial year.
The numbers: Bapcor, which operates a network of 1,100 stores under the Autobarn, Autopro, and Burson brands, expects to achieve savings of $20 million to $30 million in FY25, with the majority realised in the second half of the year.
After swinging to a full-year loss in FY24, Bapcor said it has exited a quarter of its planned warehouses to reduce costs, and removed more than 100 non-customer facing roles.
Meanwhile, the company said that total revenue in the September quarter grew 0.7% compared to the prior corresponding period.
The context: Bapcor, which rejected a takeover bid from Bain Capital in June, said that its Australian trade and specialist networks businesses are currently "performing well", while "the retail environment, and our performance in it, continues to be more challenged".
New Bapcor boss Angus McKay also elaborated on the company's decision to bring the executive chair and chief executive roles together into one position.
What they said: "Bapcor believes the combined role will improve accountability and speed of decision-making," said McKay, who assumed the position in August.
"It will also strengthen Bapcor's ability to reset its business, drive efficiencies and ultimately grow our position in our selected markets," he said.
The source: ASX announcement
