•
Oct 09, 2021

Advance Auto Parts Q3 2021 Earnings Report

Delivered improved top-line growth and margin expansion.

Key Takeaways

Advance Auto Parts reported a 3.1% increase in net sales to $2.6 billion and a 3.1% increase in comparable store sales. Diluted EPS increased 25.8% to $2.68, and adjusted diluted EPS increased 21.6% to $3.21.

Net sales increased 3.1% to $2.6 billion.

Comparable store sales increased 3.1%.

Diluted EPS increased 25.8% to $2.68; Adjusted Diluted EPS increased 21.6% to $3.21.

Free cash flow increased to $734.0 million.

Total Revenue
$2.62B
Previous year: $2.54B
+3.1%
EPS
$3.21
Previous year: $2.81
+14.2%
Comp store sales
3.1%
Previous year: 10.2%
-69.6%
Gross Profit
$1.18B
Previous year: $1.13B
+4.8%
Cash and Equivalents
$605M
Previous year: $1.07B
-43.4%
Free Cash Flow
$734M
Previous year: $617M
+19.0%
Total Assets
$11.9B
Previous year: $12B
-0.9%

Advance Auto Parts

Advance Auto Parts

Forward Guidance

The company is increasing its full-year 2021 sales and profit guidance to reflect the positive results year-to-date and expectations for the balance of the year.

Positive Outlook

  • Continued top-line strength
  • Higher than planned inflation headwinds
  • Remain committed to the successful conversion of California locations
  • Confident once completed will be highly accretive to our growth trajectory
  • Positive sales trends during the first four weeks of our fourth quarter

Challenges Ahead

  • Challenging construction environment in California
  • Primarily related to the ongoing pandemic
  • Higher than planned inflation headwinds
  • Labor shortages or disruptions and the impact on our ability to complete store openings
  • Complexities in its inventory and supply chain