Advance Auto Parts Q4 2022 Earnings Report
Key Takeaways
Advance Auto Parts reported a 3.2% increase in net sales to $2.5 billion and a 2.1% increase in comparable store sales for the fourth quarter of 2022. The company's GAAP diluted EPS increased 37.7% to $1.79, and adjusted diluted EPS increased 39.1% to $2.88. The company is taking decisive actions to improve performance in 2023, focusing on inventory availability and leveraging its asset base.
Net sales increased 3.2% to $2.5 billion driven by strategic pricing and new store openings.
Comparable store sales increased 2.1%.
GAAP diluted EPS increased 37.7% to $1.79.
Adjusted diluted EPS increased 39.1% to $2.88.
Advance Auto Parts
Advance Auto Parts
Forward Guidance
In 2023, the company is shifting to GAAP as their reporting method for annual guidance. They expect transformation costs to be less impactful, which reduces the need for non-GAAP adjustments. They are elevating their performance to improve topline growth and share gains while delivering operating income margin expansion.
Positive Outlook
- Net sales between $11.4 billion and $11.6 billion
- Comparable store sales growth between 1.0% and 3.0%
- Operating income margin between 7.8% and 8.2%
- Diluted EPS between $10.20 and $11.20
- Free cash flow minimum of $400 million
Challenges Ahead
- Income tax rate between 24.0% and 25.0%
- Capital expenditures between $300 million and $350 million
- New store and branch openings between 60 and 80
- Comparable store sales include locations open for 13 complete accounting periods and excludes sales to independently owned Carquest locations.
- Free cash flow is a non-GAAP measure.