Advance Auto Parts Inc. (NYSE: AAP) Q1 2025 Earnings | May 22, 2025

About this video

Advance Auto Parts Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America, reported its Q1 2025 financial results on May 22, 2025. Net sales for the quarter totaled $2.58 billion, down 6.8% year-over-year from $2.77 billion, primarily due to the closure of over 500 stores as part of the company’s store optimization program. Gross profit was $1.11 billion, representing a margin of 42.9%, slightly lower than the prior year, with margin headwinds driven by liquidation sales at closing locations. Despite the sales decline, Advance Auto Parts posted a net income of $24 million, down from $40 million a year ago, and reported basic and diluted earnings per share of $0.40, compared to $0.67 in Q1 2024. Adjusted diluted loss per share was $0.22, which was better than analyst expectations. Operating expenses rose to 48% of net sales, largely due to $118 million in restructuring costs, resulting in an operating loss of $131 million for the quarter. Free cash flow was negative at $198 million. CEO Shane O’Kelly credited the team for delivering better-than-expected sales and profitability, highlighting eight consecutive weeks of US Pro comparable sales growth and the accelerated completion of store footprint optimization. Management reaffirmed full-year 2025 guidance, projecting net sales between $8.4 billion and $8.6 billion, comparable store sales growth of 0.5%–1.5%, and adjusted diluted EPS between $1.50 and $2.50. The company remains focused on mitigating the impact of tariffs, optimizing operations, and pursuing new store expansion opportunities. Outlook: Full-year 2025 net sales guidance: $8.4–$8.6 billion Comparable store sales growth expected between 0.5% and 1.5% Adjusted diluted EPS forecast: $1.50–$2.50 Continued focus on operational efficiency, cost management, and strategic expansion About Inside Ticker: For more expert analysis and real-time updates on Advance Auto Parts Inc. (NYSE: AAP) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #AdvanceAutoParts #AAP #Q12025 #Earnings #AutoParts #Retail #FinancialResults #Turnaround #Restructuring #InsideTicker