Advance Auto Parts (AAP) shares plunged after the company reported quarterly results that were well below expectations and revised down its full-year guidance. The earnings news overshadowed the sale of its wholesale business.

The retailer reported diluted earnings per share (EPS) of 75 cents, down from $1.32 a year ago and missing analysts’ expectations of 92 cents. Net sales were roughly flat at $2.68 billion, slightly above expectations.

Advance Auto Parts lowered its full-year revenue forecast to $11.15 billion to $11.25 billion, while diluted earnings per share are estimated at $2 billion to $2.50. In both cases, the upper end of the range was below the analyst consensus.

The company’s shares lost 16 percent in recent trading. They fell as much as 22 percent in early trading, trading at their lowest level since last October.

Weak start to the current quarter

Chief Executive Shane O’Kelly cited a “difficult demand environment” in the second quarter, adding that the company continued to make “progress on our decisive actions.”

During a conference call with analysts, Chief Financial Officer Ryan Grimsland said that “consumers continue to feel the burden of an uncertain macroeconomic climate,” according to a transcript provided by I’m looking for Alpha.

Grimsland added that the current quarter had started weaker, contributing to the lower annual forecast. However, he said the company remained confident of a recovery because there were so many old vehicles in circulation and car repairs were largely not a discretionary expense.

Sell ​​Worldpac

Advance Auto also announced the sale of its wholesale distribution unit Worldpac for $1.5 billion. The unit was bought by funds managed by the Carlyle Group (CG), the company said Wednesday.

“The sale allows our team to focus more on decisive actions to turn around the Advance Blended Box business,” said O’Kelly. “The proceeds from the transaction will provide us with greater financial flexibility as we continue our strategic and operational review.”