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Apr 23, 2022

Advance Auto Parts Q1 2022 Earnings Report

Advance Auto Parts reported first quarter results with net sales increasing and comparable store sales also increasing.

Key Takeaways

Advance Auto Parts reported a 1.3% increase in net sales, reaching $3.4 billion. Comparable store sales increased by 0.6%. The company returned over $400 million to shareholders through dividends and share repurchases and reaffirmed its full-year 2022 guidance.

Net sales increased 1.3% to $3.4 billion.

Comparable store sales increased 0.6%, with a 25.3% increase on a two-year stack.

The company returned over $400 million of cash to shareholders through dividends and share repurchases.

Full year 2022 guidance was affirmed.

Total Revenue
$3.4B
Previous year: $3.33B
+2.1%
EPS
$3.57
Previous year: $3.34
+6.9%
Comp store sales
0.6%
Previous year: 24.7%
-97.6%
Gross Profit
$1.5B
Previous year: $1.48B
+1.0%
Cash and Equivalents
$139M
Previous year: $880M
-84.2%
Free Cash Flow
-$170M
Previous year: $259M
-165.6%
Total Assets
$12B
Previous year: $11.9B
+1.1%

Advance Auto Parts

Advance Auto Parts

Forward Guidance

Advance Auto Parts reaffirmed its full year 2022 guidance, including comparable store sales growth, adjusted operating margin expansion, and double-digit adjusted earnings per share growth. Adjusted diluted EPS guidance range was slightly increased reflecting year to date share repurchases.

Positive Outlook

  • Comparable store sales growth between 1.0% and 3.0%.
  • Adjusted operating income margin between 10.0% and 10.2%.
  • Adjusted diluted EPS between $13.30 and $13.85.
  • Capital expenditures between $300 million and $350 million.
  • Share repurchases between $500 million and $700 million.

Challenges Ahead

  • Net sales between $11.2 billion and $11.5 billion.
  • Income tax rate between 24.0% and 26.0%.
  • Free cash flow minimum of $775 million.
  • New store and branch openings between 125 and 150.
  • Volatility within the broader macro environment.