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Advance Auto Parts Inc (AAP)
:AAP
Earnings Data
Report Date
May 28, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
-0.34Last Year’s EPS
0.67Same Quarter Last Year
Based on 17 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 26, 2025
|% Change Since: -19.57%
|Next Earnings Date:May 28, 2025
Earnings Call Sentiment|Neutral
The earnings call highlighted strategic initiatives, such as store closures and enhanced vendor relationships, aimed at improving the company's financial position and operational efficiency. However, the financial results for both the quarter and the full year reflected challenges, including declining sales and negative profitability, with ongoing volatility in early 2025. Despite positive steps taken, the overall environment remains challenging.Company Guidance
In the guidance provided during the Advance Auto Parts' Fourth Quarter and Full Year 2024 Earnings Conference Call, the company outlined several key metrics and strategic initiatives aimed at improving future performance. For the fiscal year 2025, Advance Auto Parts expects net sales to range between $8.4 billion to $8.6 billion, reflecting a reduction of 5% to 8% year-over-year due to store closures. The company anticipates comparable sales growth of 50 to 150 basis points on a 52-week basis. Additionally, adjusted operating income margin is projected to be between 2% to 3%, with adjusted diluted EPS ranging from $1.50 to $2.50. The guidance also includes an expected 53rd week contribution of approximately $100 million to $120 million in sales. The company aims to achieve gross margin expansion through product cost savings and improvements in supply chain and labor productivity. Key strategic initiatives include enhancing merchandising excellence, optimizing the distribution network with 12 large DCs by 2026, and focusing on improving speed of service at stores. These efforts are expected to support the company’s goal of achieving adjusted operating margins of approximately 7% by 2027.Strategic Store Closures and Improved Liquidity
Advance Auto Parts successfully closed approximately 500 corporate stores and 200 independent locations, with liquidations largely complete and lease terminations tracking favorably. The closure process was ahead of schedule, enhancing the company's liquidity position, bolstered by proceeds from the Worldpac sale.
Enhanced Vendor Relationships and Cost Improvements
The company reported strong vendor partnerships, resulting in improved product costs and promotional pricing. These enhancements are expected to drive gross margin improvements throughout 2025, particularly in the latter half of the year.
Market Hub Expansion Showing Positive Results
The expansion of market hub stores contributed to above-target comparable sales growth. With 19 market hubs operational and plans for further openings, these hubs are increasing same-day parts availability, supporting stronger future sales growth.
Remediation of Material Weaknesses
Advance Auto Parts successfully remediated all outstanding material weaknesses by the end of 2024, indicating an improved control environment and enhanced financial reporting reliability.
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AAP Earnings History
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
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AAP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 26, 2025 | $45.88 | $37.70 | -17.83% |
| Nov 14, 2024 | $40.72 | $40.97 | +0.61% |
| Aug 22, 2024 | $61.17 | $50.48 | -17.48% |
| May 29, 2024 | $69.05 | $61.47 | -10.98% |
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.
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FAQ
When does Advance Auto Parts Inc (AAP) report earnings?
Advance Auto Parts Inc (AAP) is schdueled to report earning on May 28, 2025, TBA Not Confirmed.
What is Advance Auto Parts Inc (AAP) earnings time?
Advance Auto Parts Inc (AAP) earnings time is at May 28, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is AAP EPS forecast?
AAP EPS forecast for the fiscal quarter 2025 (Q1) is -0.34.
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