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Jan 02, 2021

Advance Auto Parts Q4 2020 Earnings Report

Advance Auto Parts reported increased net sales and comparable store sales.

Key Takeaways

Advance Auto Parts reported a strong fourth quarter and full year 2020, with net sales reaching $2.4 billion for the quarter, a 12.0% increase, and comparable store sales increasing by 4.7%. Diluted EPS increased by 19.6% to $1.65, and adjusted diluted EPS increased by 14.0% to $1.87, including a $0.22 impact from COVID-19. The company also crossed $10B in annual net sales for the first time ever.

Net sales increased 12.0% to $2.4B; Comparable store sales increased 4.7%.

Operating income increased 20.4% to $151.8M.

Diluted EPS increased 19.6% to $1.65; Adjusted diluted EPS Increased 14.0% to $1.87 including $0.22 impact from COVID-19.

Returned $319.9M to shareholders through the Company's share repurchase program

Total Revenue
$2.37B
Previous year: $2.11B
+11.9%
EPS
$1.87
Previous year: $1.64
+14.0%
Comp store sales
4.7%
Previous year: 0.1%
+4600.0%
Gross Profit
$1.08B
Previous year: $929M
+16.7%
Cash and Equivalents
$835M
Previous year: $419M
+99.4%
Free Cash Flow
$702M
Previous year: $57.5M
+1121.9%
Total Assets
$11.8B
Previous year: $11.2B
+5.3%

Advance Auto Parts

Advance Auto Parts

Forward Guidance

The Company provided the following assumptions based on projections for the U.S. and guidance ranges related to its 2021 outlook:

Positive Outlook

  • An increase in total vehicle miles driven in the U.S. from 2020 but to remain below 2019
  • Consistent year-over-year federal tax rate
  • No material increases in the federal minimum wage
  • A reduction in COVID-19 related expenses
  • Comparable store sales 1.0 % to 3.0 %