Financial Data and Key Metrics Changes - For the first quarter, net sales from continuing operations were $2.6 billion, a 7% decrease compared to the previous year, primarily due to store optimization activities [25] - Comparable store sales declined by 60 basis points during the quarter, excluding locations closed which generated $51 million in liquidation sales [25] - Gross profit from continuing operations was $1.11 billion, representing 42.9% of net sales, resulting in a gross margin contraction of 50 basis points year-over-year [28] - Adjusted diluted loss per share from continuing operations was $0.22 compared to earnings per share of $0.33 in the prior year [30] - Free cash flow was negative $198 million, compared to negative $49 million in the prior year, influenced by cash expenses related to store optimization and additional inventory investments [30] Business Line Data and Key Metrics Changes - The Pro business grew in the low single-digit range, with eight consecutive weeks of positive comparable sales growth in the U.S. [5][26] - The DIY channel declined in the low single-digit range, indicating ongoing challenges in that segment [27] - Strength was observed in categories such as batteries, wipers, and fluids and chemicals [27] Market Data and Key Metrics Changes - Approximately 75% of the store footprint is now concentrated in markets where the company holds the number one or two position based on store density [8] - The company plans to open more than 100 new stores over the next three years to capture share in a total addressable market exceeding $150 billion [8] Company Strategy and Development Direction - The company is focused on enhancing operational performance through strategic pillars of merchandising, supply chain, and stores [8] - A new assortment framework has been piloted to improve parts coverage at the store level, leading to an estimated uplift of nearly 50 basis points in comparable sales growth in targeted markets [10] - The company aims to establish 60 market hubs by mid-2027 to strengthen its competitive position [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating through a volatile environment due to the aging vehicle fleet and nondiscretionary nature of auto parts spending [7] - The company reaffirmed its full-year 2025 guidance, considering the impacts of tariffs and planned mitigation strategies [6][30] - Management acknowledged the challenges in the DIY segment but emphasized efforts to improve customer engagement and service levels [23] Other Important Information - The company is on track to close 12 distribution centers this year, with six completed to date, aiming to operate 12 large DCs by the end of 2026 [15] - The company has visibility to greater than 50 basis points of annualized cost reductions expected to start flowing in the second half of the year [13] Q&A Session Summary Question: Can you provide insights on the comp expectations for DIY versus DIFM? - Management indicated that DIFM is expected to drive performance while DIY remains pressured, with no significant changes in trends observed [42][44] Question: How do you view the guidance regarding gross margin and SG&A? - Management confirmed that gross profit growth will be the main driver of operating income, with SG&A expected to decrease year-over-year due to store closures and productivity improvements [48][49] Question: What are the expectations for non-GAAP adjustments for the rest of the year? - Management noted that while they are not guiding GAAP specifically, they expect to see a significant portion of cash expenses related to store optimization already accounted for [103] Question: How is the company managing tariff impacts on pricing? - Management explained that they are pushing back on cost increases from vendors and exploring alternative sources of supply, with a blended tariff rate of about 30% currently in effect [66][68]

Advance Auto Parts (AAP) Q1 2025 Earnings Call May 22, 2025 08:00 AM ET Speaker0 Good morning, and thank you for participating in today's call. I'm joined by Shane O'Kelly, President and Chief Executive Officer and Ryan Grimsland, Executive Vice President and Chief Financial Officer. During today's call, we will be referencing slides, which are available to view via webcast. The slides have also been posted to our Investor Relations website. Before we begin, please be advised that management's remarks today ...

分组1 - Advance Auto Parts reported a quarterly loss of $0.22 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.81, representing an earnings surprise of 72.84% [1] - The company posted revenues of $2.58 billion for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 3.34%, but down from $3.41 billion a year ago [2] - The stock has underperformed, losing about 33.8% since the beginning of the year compared to the S&P 500's decline of -0.6% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $1.97 billion, and for the current fiscal year, it is $1.59 on revenues of $8.44 billion [7] - The Automotive - Retail and Wholesale - Parts industry is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] 分组3 - The estimate revisions trend for Advance Auto Parts is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

Advance Auto Parts, Inc. AAP will release its first-quarter earnings results before the opening bell on Thursday, May 22.Analysts expect the Raleigh, North Carolina-based company to report a quarterly loss at 69 cents per share, versus a year-ago profit of 67 cents per share in the year-ago period. According to data from Benzinga Pro, Advance Auto Parts projects to report quarterly revenue at $2.51 billion, compared to $3.41 billion a year earlier.On March 26, Advance Auto Parts disclosed that it completed ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Moretus Research delivers state-of-the-art, buy-side quality equity research for serious investors se ...

Analysts on Wall Street project that Advance Auto Parts (AAP) will announce quarterly loss of $0.82 per share in its forthcoming report, representing a decline of 222.4% year over year. Revenues are projected to reach $2.5 billion, declining 26.6% from the same quarter last year.The consensus EPS estimate for the quarter has been revised 3.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this t ...

This week's rally is particularly encouraging for investors who like to invest in small-cap stocks. The Russell 2000 index, widely considered to be the small-cap index, is up about 3.8% for the week. This continues the momentum that’s been building for the last month, in which the index has climbed 15.7%. Small-cap stocks are particularly sensitive to interest rates. Many of these companies rely on debt for their operations, which means, in some cases, it would be harder for companies to absorb higher tarif ...

The market expects Advance Auto Parts (AAP) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be relea ...

Financial Data and Key Metrics Changes - 2024 was a transformative year for the company, marked by decisive actions that positioned it for long-term profitable growth and value creation for shareholders [5] - The company successfully completed the sale of Worldpac for $1.5 billion, strengthening its balance sheet and streamlining operations [5] Business Line Data and Key Metrics Changes - The company made the difficult decision to rationalize its store and distribution center footprint, with over 75% of the revised store footprint in designated market areas where it holds the number one or two position based on store density [6] - Strategic investments were made to enhance competitive position, reduce turnover, and improve customer service [6] Market Data and Key Metrics Changes - The company retained the Carquest Canada business, which resembles the US blended box model and offers additional runway for long-term growth [5] Company Strategy and Development Direction - A strategic plan was introduced focusing on three fundamental areas: merchandising excellence, supply chain, and store operations [7] - The company is focused on execution and has a renewed emphasis on customer-centric strategies [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and the urgency of execution as the company looks to 2025 and beyond [7] - The management team has been strengthened with leaders possessing deep retail expertise and strong functional knowledge [6] Other Important Information - The company held its annual meeting virtually, allowing shareholders to submit questions via a Q&A tool [2] - A quorum was confirmed with 92.23% of outstanding shares present or represented [12] Q&A Session Summary Question: Inquiry about business operations - The company plans to address all industry and business matters in the upcoming earnings call scheduled for May 22 [24][25]

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued ...