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Apr 19

Advance Auto Parts Q1 2025 Earnings Report

Advance Auto Parts reported a net income despite a revenue decline and reaffirmed its full-year guidance.

Key Takeaways

Advance Auto Parts saw a year-over-year revenue drop but delivered better-than-expected profitability and net income. The company continued progress on its strategic turnaround, driven by strong Pro performance, while managing impacts from store closures.

Net sales were $2.6 billion, down from $2.8 billion in Q1 2024

Reported EPS was $0.40, while adjusted EPS showed a loss of -$0.22

Net income from continuing operations totaled $24 million

Company closed over 500 stores as part of a footprint optimization plan

Total Revenue
$2.58B
Previous year: $3.41B
-24.2%
EPS
-$0.22
Previous year: $0.67
-132.8%
Comp store sales
-0.6%
Gross Profit
$1.11B
Previous year: $1.43B
-22.4%
Cash and Equivalents
$1.67B
Previous year: $451M
+270.7%
Free Cash Flow
-$198M
Previous year: -$46.3M
+327.9%
Total Assets
$10.6B
Previous year: $12.2B
-13.0%

Advance Auto Parts

Advance Auto Parts

Advance Auto Parts Revenue by Geographic Location

Forward Guidance

The company reaffirmed its full-year 2025 guidance, maintaining expectations despite macroeconomic headwinds and ongoing restructuring.

Positive Outlook

  • Full-year net sales expected between $8.4B and $8.6B
  • Adjusted EPS guidance reaffirmed at $1.50 to $2.50
  • 30 new store openings planned
  • 10 new market hubs to be launched
  • Pro segment continues to show weekly comp sales growth

Challenges Ahead

  • Guidance assumes current tariffs remain in place for the rest of 2025
  • Ongoing headwinds from liquidation sales
  • Store closures contributed to revenue and margin pressure
  • Free cash flow projected to remain negative
  • Restructuring and transformation expenses continue to weigh on results