Advance Auto Parts Q1 2021 Earnings Report
Key Takeaways
Advance Auto Parts reported a net sales increase of 23.4% to $3.3 billion and a comparable store sales increase of 24.7%. The company's diluted EPS increased by 346.0% to $2.81, and adjusted diluted EPS increased by 234.0% to $3.34. They returned $204 million to shareholders through share repurchases and dividends and the board approved an additional $1 billion share repurchase authorization.
Net sales increased 23.4% to $3.3 billion.
Comparable store sales increased 24.7%.
Operating income increased 221.5% to $252.1 million; Operating income margin expanded 466 basis points to 7.6%.
Diluted EPS increased 346.0% to $2.81; Adjusted Diluted EPS increased 234.0% to $3.34.
Advance Auto Parts
Advance Auto Parts
Forward Guidance
The company updated its full year guidance to reflect continued top-line momentum, anticipating significant volatility throughout the balance of the year due to macro-economic factors.
Positive Outlook
- Net sales are expected to be between $10.4 billion and $10.6 billion.
- Comparable store sales are expected to increase between 4.0% and 6.0%.
- Adjusted operating income margin is expected to be between 9.0% and 9.2%.
- The income tax rate is projected to be between 24% and 26%.
- Free cash flow is expected to be a minimum of $575 million.
Challenges Ahead
- Anticipating significant volatility throughout the balance of this year due to macro-economic factors.
- Capital expenditures are projected to be between $300 million and $350 million.
- New store openings are planned for 100 to 150 locations.
- The company expects ongoing challenges related to the pandemic.
- The company expects continued supply chain disruptions.