Advance Auto Parts Inc ( (AAP) ) has released its Q4 earnings. Here is a breakdown of the information Advance Auto Parts Inc presented to its investors.
Advance Auto Parts, Inc. is a prominent automotive aftermarket parts provider in North America, catering to both professional installers and do-it-yourself customers through its extensive network of stores and distribution centers.
In its latest earnings report, Advance Auto Parts announced a challenging year marked by strategic restructuring and asset optimization efforts aimed at long-term success. The company reported a decrease in net sales and comparable store sales for both the fourth quarter and the full year 2024, as it navigated through a significant transformation plan.
Key financial metrics revealed a decline in net sales to $2.0 billion for the fourth quarter, down 0.9% from the previous year, with a comparable store sales decrease of 1.0%. The company’s gross profit for the quarter was $347.1 million, or 17.4% of net sales, impacted by atypical items and headwinds. For the full year, net sales totaled $9.1 billion, a 1.2% decrease from 2023, with a comparable store sales decline of 0.7%. The adjusted operating loss for the fourth quarter was $99.4 million, and for the full year, adjusted operating income was $35.2 million.
Advance Auto Parts is focused on executing a strategic plan to improve its business performance, with initiatives in merchandising excellence, supply chain optimization, and store operations. The company aims to achieve an adjusted operating margin of approximately 7% by FY27, with plans to open new stores and enhance its distribution network.
Looking ahead, Advance Auto Parts remains committed to its turnaround strategy, with management expressing confidence in delivering improved operating performance in 2025. The company has set a positive outlook for the upcoming year, aiming for modest growth in comparable store sales and an increase in new store openings.