Advance Auto Parts Q2 2024 Earnings Report
Key Takeaways
Advance Auto Parts reported flat net sales of $2.7 billion compared to the prior year, with a comparable store sales increase of 0.4%. Gross profit decreased by 2.3% to $1.1 billion, and diluted EPS was $0.75, down from $1.32 in the second quarter of the previous year. The company announced the sale of Worldpac for $1.5 billion to strengthen the balance sheet and streamline focus.
Net sales totaled $2.7 billion, flat compared to the prior year.
Comparable store sales increased by 0.4%.
Gross profit decreased 2.3% to $1.1 billion, with a gross profit margin of 41.5%.
Diluted EPS was $0.75, compared to $1.32 in the prior year.
Advance Auto Parts
Advance Auto Parts
Forward Guidance
Advance Auto Parts provided full year 2024 guidance with net sales between $11.15 billion and $11.25 billion, comparable store sales between -1.0% and 0.0%, operating income margin between 2.1% and 2.5%, diluted EPS between $2.00 and $2.50, capital expenditures between $200 million and $250 million, and minimum free cash flow of $100 million.
Positive Outlook
- Net sales between $11,150 million and $11,250 million
- Operating income margin between 2.1% and 2.5%
- Diluted EPS between $2.00 and $2.50
- Capital expenditures between $200 million and $250 million
- Minimum free cash flow of $100 million
Challenges Ahead
- Comparable store sales between -1.0% and 0.0%