ADVANCE AUTO PARTS INC SEC 10-Q Report

Advance Auto Parts Inc., a leading automotive aftermarket parts provider, has released its Form 10-Q report for the first quarter of fiscal 2025. The report highlights the company's financial performance and operational activities amidst ongoing restructuring efforts aimed at improving profitability and growth potential.

Financial Highlights

Net Sales: $2,583 million, a decrease of 6.8% compared with the first quarter of fiscal 2024, driven by lower sales as a result of store closures executed under the 2024 Restructuring Plan.

Gross Profit: $1,109 million, or 42.9% of net sales, a decrease from 43.4% of net sales in the first quarter of fiscal 2024, due to lower margin liquidation sales associated with the 2024 Restructuring Plan.

Operating (Loss) Income: $(131) million, or (5.1)% of net sales, compared to an income of $53 million, or 1.9% of net sales, in the first quarter of fiscal 2024, reflecting the impact of restructuring and related expenses.

Net Income: $24 million, or 0.9% of net sales, compared to $17 million, or 0.6% of net sales, in the first quarter of fiscal 2024, benefiting from a net discrete tax benefit of $126 million related to certain tax benefits associated with capital loss deductions.

Diluted Earnings Per Share: $0.40, compared with $0.29 for the comparable period of 2024, reflecting the impact of restructuring activities and tax benefits.

Business Highlights

Revenue Segments: The company reported that 62% of net sales came from Parts and Batteries, 23% from Accessories and Chemicals, and 14% from Engine Maintenance, with the remaining 1% from other categories.

Geographical Performance: The company operates 4,285 stores primarily in the United States, with additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands. It also serves 881 independently owned Carquest branded stores across these regions, as well as in Mexico and various Caribbean islands.

Sales Units: During the sixteen weeks ended April 19, 2025, the company opened 10 new stores and closed 513 stores, resulting in a total of 4,285 stores at the end of the first fiscal quarter.

Restructuring Impact: The company completed all store location closures under the 2024 Restructuring Plan, which was designed to improve profitability and growth potential by streamlining operations.

Future Outlook: The company continues to focus on cost and supply chain optimization, with plans to incur additional restructuring expenses of approximately $75 million to $100 million by the end of fiscal year 2025, primarily related to lease terminations and professional services.

SEC Filing: ADVANCE AUTO PARTS INC [ AAP ] - 10-Q - May. 22, 2025