Better-than-Expected Q1 2025 Performance
Advance Auto Parts delivered better-than-expected first quarter results, with Pro business growing in the low single-digit range and 8 consecutive weeks of positive comparable sales growth in the U.S.
Store Footprint Optimization Completion
The company completed its store footprint optimization program, with approximately 75% of the store footprint now concentrated in markets where Advance holds the #1 or #2 position based on store density.
Strategic Initiatives for Growth
Advance Auto Parts plans to open more than 100 new stores over the next 3 years and aims to establish 60 market hubs by mid-2027 to strengthen its competitive position.
Operational Improvements
The company reported stronger profitability with near breakeven adjusted operating margin and is on track to deliver positive operating margins starting in Q2 2025.
Improved Inventory and Merchandising
Advance Auto Parts expanded its new assortment framework to 10 additional DMAs, leading to an estimated uplift of nearly 50 basis points in comparable sales growth within these DMAs.