Advance Auto Parts Q3 2022 Earnings Report
Key Takeaways
Advance Auto Parts reported a 0.8% increase in net sales to $2.6 billion, driven by strategic pricing and new store openings. However, comparable store sales decreased by 0.7%. The company reiterates its full-year guidance for net sales growth, comparable store sales, and adjusted operating income margin expansion.
Net sales increased 0.8% to $2.6 billion.
Comparable store sales decreased 0.7%.
Diluted EPS decreased 31.3% to $1.84; Adjusted diluted EPS decreased 11.5% to $2.84.
Opened 37 new store and branch locations.
Advance Auto Parts
Advance Auto Parts
Forward Guidance
The company is reiterating its full-year guidance for net sales growth, comparable store sales and adjusted operating income margin expansion. Adjusted diluted EPS guidance range is updated to reflect the impact of foreign currency. Strategic inventory investments are being made to improve availability.
Positive Outlook
- Reiterating full year guidance for net sales growth.
- Reiterating comparable store sales guidance.
- Reiterating adjusted operating income margin expansion guidance.
- Making strategic inventory investments to improve availability.
- Inventory investments are expected to accelerate growth in 2023.
Challenges Ahead
- Adjusted diluted EPS guidance range updated to reflect impact of foreign currency.
- Reduced free cash flow guidance.
- Margins contracting in the third quarter.
- Not satisfied with relative topline performance versus the industry this year.
- Diluted EPS was negatively affected by approximately $0.20 as a result of foreign currency impact in the quarter.