Key TakeawaysAdvanced Auto Parts missed expectations with its second-quarter earnings results and lowered its full-year guidance.The company also announced the sale of its wholesale distribution arm for $1.5 billion.CEO Shane O’Kelly said the company faced a "challenging demand environment."Shares in the auto parts retailer fell as much as 22% early in Thursday's session, hitting their lowest level since last October. Advance Auto Parts (AAP) shares plunged after the company announced quarterly earnings th ...

J. Michael JonesAdvance Auto Parts (NYSE:AAP) surprised the market Thursday with another soft earnings report and big cut to its full-year 2024 guidance. Back in February, I warned that it was too early to buy into the company's projected turnaround. AAP stock is a classic bull and bear debate. Activist investors see the potential in the company with its massive store base, well-known brand, and currently depressed valuation. In theory, if Advance Auto Parts can increase its profit margins to somewhat c ...

Advance Auto Parts has sold its wholesale operation Worldpac for $1.5 billion.The sale, to funds managed by the Carlyle Group, is expected to be finalized by the end of the year, Advance said in a Thursday (Aug. 22) news release.“The sale enables our team to sharpen their focus on decisive actions to turn around the Advance blended box business,” said CEO Shane O’Kelly.“Proceeds from the transaction will provide greater financial flexibility as we continue our strategic and operational review to improve the ...

Advance Auto Parts TodayAAPAdvance Auto Parts$51.63 -10.29 (-16.62%) 52-Week Range$47.73▼$88.56Dividend Yield1.94%P/E Ratio74.83Price Target$63.36Add to WatchlistAdvance Auto Parts NYSE: AAP witnessed a dramatic plunge in its stock price, falling over 20% in pre-market trading after the company released its second-quarter 2024 earnings report. The disappointing results triggered a strong adverse reaction from investors, including a miss on earnings per share (EPS) expectations, lower-than-anticipated revenu ...

Financial Data and Key Metrics Changes - Net sales for Q2 2024 were $2.7 billion, flat compared to the previous year, with comparable store sales increasing by 0.4% [24][25] - Gross profit was $1.1 billion, representing 41.5% of net sales, down from 42.5% in Q2 of the prior year, impacted by strategic pricing investments and higher product costs [25][26] - SG&A expenses were $1 billion, or 38.9% of net sales, compared to 37.8% in the same quarter last year, driven by increased payroll expenses and professional fees [26] - Operating margin decreased to 2.7%, a decline of about 200 basis points year-over-year, with diluted earnings per share at $0.75 compared to $1.32 in the prior year [27] Business Line Data and Key Metrics Changes - The professional business saw positive comparable tickets and transactions, while the DIY business had a positive comparable ticket but a decline in transactions [24][25] - Comparable sales to professional customers turned positive year-over-year, contrasting with a decline in the first quarter [14][25] Market Data and Key Metrics Changes - The company experienced a weak demand environment, with consumers deferring maintenance and lower discretionary spending impacting both pro and DIY businesses [28][80] - Trends started off soft in Q2 but improved as the quarter progressed, aided by hot weather-related sales [24][80] Company Strategy and Development Direction - The company is focused on a blended box model servicing both professional and DIY customers, with a commitment to improving operational efficiency and productivity [12][19] - The sale of the Worldpac business for $1.5 billion is expected to strengthen the balance sheet and allow for reinvestment in core operations [11][12] - The company aims to generate mid-single-digit operating margins in the coming years, with a focus on sustainable positive comparable sales and improving gross margins [19][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but expressed confidence in the company's strategic actions to drive growth and improve margins [7][28] - The company expects consumer-related headwinds to impact performance in the short term but remains optimistic about long-term growth driven by an aging vehicle fleet [28][29] Other Important Information - The company plans to open at least 100 new stores per year in markets of strength and is consolidating its supply chain to improve parts availability [20][18] - The company is on track to deliver $50 million in indirect procurement savings by next year [14] Q&A Session Summary Question: Does the full year guidance include Worldpac? - Yes, the guidance includes Worldpac until the transaction closes, after which it will be reported as discontinued operations [33] Question: Is there any exclusivity in the distribution agreement with the buyer of Worldpac? - The company will continue to sell Worldpac products through its stores, retaining the capability to source products [36][38] Question: How much of the pricing investment is annualized and what product lines are affected? - The additional pricing investment is annualized and broadly spread across various categories, including pro categories [39][40] Question: How does the company balance fixing the business and investing for growth? - The company must focus on both aspects simultaneously to achieve positive comparable sales and operational efficiency [46] Question: What is the outlook for working capital reduction post-Worldpac sale? - Approximately $1 billion of inventory is associated with Worldpac, and the company will share more details on the RemainCo in Q3 [51] Question: What are the drivers behind the reduction in EBIT margin? - The primary drivers are volume decline and pricing investments, with SG&A coming in as expected [60] Question: How does the company plan to achieve mid-single-digit margins? - The company is focusing on sales productivity, first cost margin, and supply chain costs to improve operating income [77]

Advance Auto Parts is in trouble, and things are getting worse.Advance Auto Parts (AAP -16.50%) stock tumbled 15.8% through 10:35 a.m. ET after the company beat on sales but missed on earnings in its latest earnings release Thursday morning.Heading into the fiscal second-quarter results, analysts forecast the automotive parts retailer would earn $0.94 per share on just under $2.7 billion in sales in the period ended July 13. Advance Auto Parts nailed the sales target, but whiffed on profits, reporting just ...

For the quarter ended June 2024, Advance Auto Parts (AAP) reported revenue of $2.68 billion, down 0.1% over the same period last year. EPS came in at $0.75, compared to $1.43 in the year-ago quarter.The reported revenue represents a surprise of +0.38% over the Zacks Consensus Estimate of $2.67 billion. With the consensus EPS estimate being $0.97, the EPS surprise was -22.68%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Advance Auto Parts (AAP) came out with quarterly earnings of $0.75 per share, missing the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $1.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22.68%. A quarter ago, it was expected that this auto parts retailer would post earnings of $0.69 per share when it actually produced earnings of $0.67, delivering a surprise of -2.90%.Over the last four quarter ...

Exhibit 99.1 Advance Auto Parts Reports Second Quarter 2024 Results RALEIGH, N.C., August 22, 2024 - Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers, announced its financial results for the second quarter ended July 13, 2024. "Our team delivered positive comparable sales growth while navigating a challenging demand environment during the second quarter. I would like to thank the team f ...

Advance Auto Parts, Inc. AAP is set to release earnings results for its second quarter, before the opening bell on Thursday, Aug. 22.Analysts expect the Raleigh, North Carolina-based company to report quarterly earnings at 94 cents per share, down from $1.44 per share in the year-ago period. Advance Auto Parts projects to report quarterly revenue of $2.67 billion for the quarter, compared to $2.66 billion a year earlier, according to data from Benzinga Pro.On May 29, the company reported first-quarter earni ...