Advance Auto Parts Inc
NYSE:AAP

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Advance Auto Parts Inc Logo
Advance Auto Parts Inc
NYSE:AAP
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Price: 51.08 USD -2.65% Market Closed
Market Cap: 3.1B USD

Advance Auto Parts Inc
Investor Relations

Advance Auto Parts Inc. has long been a prominent player in the American automotive aftermarket, a sector distinguished not only by fierce competition but also by vibrant opportunities. Founded in 1932, the company embarked on a journey from a modest store in Roanoke, Virginia, to become a retail powerhouse, with a substantial footprint across North America. At its core, Advance Auto Parts thrives by catering to both the do-it-yourself (DIY) enthusiasts and the professional garages, offering a diverse range of automotive products from replacement parts to maintenance items. The company's model is built on a dual-channel approach that serves individual consumers and commercial clients, ensuring a steady stream of business notwithstanding economic fluctuations.

Advance Auto Parts generates revenue through its expansive network of stores and various e-commerce platforms, effectively combining traditional brick-and-mortar operations with digital convenience. A crucial part of their business strategy involves fostering relationships with automotive parts manufacturers, which helps them maintain a broad inventory to meet evolving customer demands. Furthermore, the company has invested in sophisticated logistics and distribution systems. These capabilities allow for efficient stocking and delivery, reinforcing their commitment to customer satisfaction and operational efficiency. By balancing the art of retail with the science of logistics, Advance Auto Parts maintains a competitive edge in the intricate landscape of automotive servicing and repair.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 30, 2025
AI Summary
Q3 2025

Strongest Quarter in Two Years: Advance Auto Parts delivered its best operating margin and overall financial results in over two years, with a 3% comparable sales increase and 370 basis points of operating margin expansion.

Margin Expansion: Adjusted operating margin reached 4.4%, up 370 basis points from last year, driven by cost reductions, strategic sourcing, and footprint optimization.

Guidance Reaffirmed: Full-year guidance for comparable sales and operating margins was reaffirmed, with expectations for 200 basis points of margin expansion in 2025.

Inventory & Liquidity: The company raised nearly $2 billion in cash, finished the rollout of its new assortment framework, and plans to carry higher inventory through year-end to support growth.

Macro & Consumer Pressures: Management noted temporary volatility and consumer pressure due to inflation and higher prices, especially in DIY, but remains confident in the industry's fundamentals.

Strategic Initiatives Progressing: Key projects include market hub expansion, DC consolidation, store upgrades, and multiyear investments in AI-driven technology and process improvements.

Build Years Ahead: 2025 and 2026 are characterized as "build years" with continued investment in foundational initiatives, with major margin expansion targeted for 2027.

Supply Chain & Vendor Stability: Recent supplier bankruptcy is viewed as isolated, and supply chain finance programs remain stable with ample liquidity and diversified sourcing.

Key Financials
Net Sales
$2 billion
Comparable Sales Growth
3%
Adjusted Operating Margin
4.4%
Gross Margin
44.8%
Adjusted Operating Income
$90 million
Adjusted Diluted EPS
$0.92
Free Cash Flow (Year-to-date)
negative $277 million
Capital Expenditures
$250 million (revised target for the year)
Adjusted SG&A
$823 million or 40.4% of net sales
Adjusted Gross Profit
$913 million
Store Optimization Cash Expenses
$130 million incurred YTD, $150 million expected for full year
Cash and Liquidity
over $3 billion in cash; $1 billion undrawn revolving credit facility
Earnings Call Recording
Other Earnings Calls

Management

Mr. Shane M. O'Kelly
President, CEO & Director
No Bio Available
Mr. Ryan Grimsland
Executive VP & CFO
No Bio Available
Ms. Tammy Moss Finley
Executive VP, General Counsel & Corporate Secretary
No Bio Available

Contacts

Address
NORTH CAROLINA
Raleigh
4200 Six Forks Road
Contacts