Advance Auto Parts Inc ( (AAP) ) has released its Q1 earnings. Here is a breakdown of the information Advance Auto Parts Inc presented to its investors.
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Advance Auto Parts, Inc. is a prominent provider of automotive aftermarket parts in North America, catering to both professional installers and do-it-yourself customers. The company operates over 4,000 stores across the United States, Canada, Puerto Rico, and the U.S. Virgin Islands, and also supports independently owned Carquest stores in various regions.
In its first quarter of 2025, Advance Auto Parts reported net sales of $2.6 billion, a decrease from $2.8 billion in the same period the previous year. Despite the challenging economic environment influenced by newly implemented tariffs, the company managed to achieve better-than-expected sales and profitability, while also completing a significant store footprint optimization.
Key financial metrics for the quarter included a gross profit of $1.1 billion, representing 42.9% of net sales, and an operating loss of $131 million. The company faced a decline in comparable store sales by 0.6%, largely due to the closure of over 500 corporate locations. Adjusted operating loss was reported at $8 million, with a negative impact from liquidation sales at closing stores.
Looking ahead, Advance Auto Parts has reaffirmed its full-year guidance for 2025, projecting net sales between $8.4 billion and $8.6 billion, and comparable store sales growth of 0.5% to 1.5%. The company plans to open 30 new stores and 10 market hubs, while navigating the ongoing challenges posed by tariffs and focusing on strategic initiatives to drive future growth.