Advanced Auto Parts (PAA) announced plans to close hundreds of stores on Thursday as the auto parts retailer posted a surprise quarterly loss.

The company’s shares jumped 10% shortly after the market opened as investors cheered the news, even though its shares are down more than a quarter this year.

As part of a new three-year turnaround plan, the company intends to reduce its U.S. presence by closing 523 Advance corporate stores, shuttering 204 independent locations and closing four distribution centers.

“We are charting a clear path and introducing a new three-year financial plan, with a focus on executing on core retail fundamentals to improve the productivity of all our assets and create value for our shareholders.” Chief Executive Officer (CEO) Shane O’Kelly said in a statement.

The retailer posts a quarterly loss; Wall Street expected a profit

The retailer reported an unexpected loss of 10 cents per share in the third quarter, while analysts polled by Visible Alpha had expected earnings per share of 52 cents.

Net sales fell to $2.1 billion, from $2.2 billion a year earlier, and also behind forecasts of $2.67 billion.

Advance Auto Parts said it expects full-year net sales from continuing operations of approximately $9 billion.

The retailer’s shares have fallen more than 30% this year.