The earnings call highlighted a return to profitability, growth in the Pro business, and strategic initiatives in SKU expansion and supply chain management. However, challenges remain with net sales decline, underperformance in the DIY channel, tariff impacts, and stagnant SG&A and gross margin improvements.

Company Guidance -

Q3 2025

During the Advance Auto Parts Second Quarter 2025 Earnings Conference Call, the company provided several metrics and insights into its financial performance and future guidance. The company reported net sales from continuing operations of $2 billion, an 8% decline compared to the previous year, with comparable sales growth of 0.1%. The gross profit margin expanded by approximately 16 basis points to 43.8%, and the adjusted operating income margin was 3.0% of net sales, resulting in about 20 basis points of margin expansion. For fiscal year 2025, the company reaffirmed its sales guidance of $8.4 billion to $8.6 billion and adjusted operating income margin guidance of 2% to 3%. However, it revised its adjusted diluted EPS guidance to a range of $1.20 to $2.20 due to higher interest expenses associated with a recent debt issuance of $1.95 billion. The company also reported a free cash flow target for the year in the range of negative $85 million to negative $25 million. Looking ahead to 2027, Advance Auto Parts is targeting low single-digit comparable sales growth and an adjusted operating income margin of approximately 7%, with an updated leverage ratio target of approximately 2x to 2.5x.

Return to Profitability

Advance Auto Parts achieved a return to profitability in Q2, supported by actions to optimize their store footprint and strategic initiatives.

Pro Business Growth

The Pro business continued to deliver positive comparable sales growth, contributing to a stronger performance in Q2.

SKU Expansion and Assortment Management

The company added more than 60,000 new SKUs year-to-date, up nearly 300% compared to last year, which improved store availability KPI by approximately 100 basis points.

Debt Capital Structure Reorganization

Advance Auto Parts completed a debt offering of $1.95 billion of senior notes and entered a new $1 billion asset-backed revolving credit facility to ensure financial flexibility.

Improved Supply Chain and Market Hub Expansion

Closed or converted 9 DCs year-to-date and improved operations, with market hubs showing an average estimated comparable sales uplift of 100 basis points.

Advance Auto Parts (AAP) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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AAP Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 12, 2025	2025 (Q3)	0.80 / -	-0.1	―	―	―
Aug 14, 2025	2025 (Q2)	0.56 / 0.69	0.75	-8.00% (-0.06)
May 22, 2025	2025 (Q1)	-0.82 / -0.22	0.67	-132.84% (-0.89)	―
Feb 26, 2025	2024 (Q4)	-1.25 / -1.18	-0.59	-100.00% (-0.59)	―
Nov 14, 2024	2024 (Q3)	0.50 / -0.10	-0.82	87.80% (+0.72)	―
Aug 22, 2024	2024 (Q2)	0.92 / 0.75	1.43	-47.55% (-0.68)	―
May 29, 2024	2024 (Q1)	0.68 / 0.67	0.72	-6.94% (-0.05)	―
Feb 28, 2024	2023 (Q4)	0.21 / -0.59	2.88	-120.49% (-3.47)	―
Nov 15, 2023	2023 (Q3)	1.44 / -0.82	2.84	-128.87% (-3.66)	―
Aug 23, 2023	2023 (Q2)	1.66 / 1.43	3.74	-61.76% (-2.31)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

AAP Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 14, 2025	$61.81	$56.85	-8.02%
May 22, 2025	$31.18	$48.96	+57.02%
Feb 26, 2025	$45.33	$37.25	-17.82%
Nov 14, 2024	$40.23	$40.48	+0.62%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.