Advance Auto Parts Inc (AAP)
NYSE:AAP
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Earnings Data
Report Date
Aug 25, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.8Last Year’s EPS
0.69Same Quarter Last Year
Based on 17 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed constructive operational momentum and a clear path to improved profitability: comparable sales accelerated (3.5% in Q1), gross margin and adjusted operating margin expanded materially, EPS turned positive, and strategic initiatives (ARGOS brand, Advance Rewards, assortment framework, market hubs, DC standardization) are showing early traction. Management reaffirmed full-year guidance and maintained a strong cash and leverage position. Key risks include modest top-line growth, near-term consumer pressure (inflation and elevated gas prices), temporary headwinds from national Pro account optimization, and the fact that significant supply chain productivity benefits are expected in 2027 and beyond. Overall, positive execution on merchandising and service improvements appears to outweigh the near-term uncertainties.Company Guidance
Comparable Sales Growth — Best in Five Years
Comparable sales grew 3.5% in Q1 — the company's strongest quarter of growth in five years, driven primarily by the Pro channel (mid-single-digit monthly growth) and a rebound in DIY (low single-digit growth).
Net Sales and Channel Performance
Reported net sales of $2.6 billion, up 1% year-over-year. Pro channel was the primary driver with Main Street Pro outperformance (~200 basis points above overall Pro comps); DIY returned to positive growth (low single digits).
Margin Expansion and Profitability Turnaround
Adjusted operating margin expanded by over 400 basis points to 3.8% in Q1. Adjusted gross profit was ~$1.2 billion (45.1% of net sales), representing ~210 basis points of gross margin expansion versus prior year. Adjusted operating income was $99 million (3.8% of net sales).
EPS Improvement
Adjusted diluted earnings per share were $0.77 in Q1 compared to a loss of $0.22 in the year-ago quarter, reflecting a meaningful profitability turnaround.
Cash Position and Leverage
Strong liquidity with approximately $3.0 billion in cash at quarter-end. Net debt leverage held steady at 2.4x, within the targeted 2x–2.5x range.
Free Cash Flow Improvement
Q1 free cash flow outflow improved to $75 million versus a $198 million outflow in the prior-year period, driven by stronger operating performance, improved working capital, and lower restructuring cash expenses.
Strategic and Merchandising Progress (ARGOS, Loyalty, Assortment)
Launched owned oil brand ARGOS (performed to expectations and expanded into additional product lines). Rolled out modernized Advance Rewards loyalty program with early strong engagement (higher sign-ups, penetration and member transactions). Updated assortment framework driving improved parts availability and higher transaction volumes, particularly in hard parts (brakes, undercar) supporting Main Street Pro growth.
Supply Chain & Market Hub Expansion
Distribution center consolidation is nearing completion; focus shifted to standardizing DC workflows and improving productivity (expected benefits in 2027+). Opened 2 market hubs in Q1 to reach 35 total; market hubs show ~100 basis points lift vs. markets without hubs and support same-day hard parts availability. Plan to open 10–15 market hubs and 40–45 new stores in 2026.
Reaffirmed Full-Year Guidance
Management reaffirmed full-year 2026 guidance: net sales ~ $8.5 billion with comparable sales +1% to +2%; adjusted operating margin 3.8%–4.5% (130–200 bps expansion); gross margin up ~110–150 bps to ~45%; adjusted diluted EPS $2.40–$3.10; capex ~ $300 million; full-year free cash flow ~ $100 million.
Operational Service Metrics Improving
Service and store metrics improved: consistent Pro delivery times under 40 minutes, improvements in customer Net Promoter Score (NPS), increased units per transaction, and productivity gains from in-store technology (Zebra devices, AIM) and server modernizations.
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
AAP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 21, 2026 | $51.24 | $58.62 | +14.40% |
Feb 13, 2026 | $57.96 | $58.59 | +1.08% |
Oct 30, 2025 | $54.56 | $50.18 | -8.03% |
Aug 14, 2025 | $60.87 | $55.98 | -8.02% |
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.
FAQ
When does Advance Auto Parts Inc (AAP) report earnings?
Advance Auto Parts Inc (AAP) is schdueled to report earning on Aug 25, 2026, Before Open (Confirmed).
What is Advance Auto Parts Inc (AAP) earnings time?
Advance Auto Parts Inc (AAP) earnings time is at Aug 25, 2026, Before Open (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 2026 (Q2) is 0.8.
