Advance Auto Parts Reiterates Fiscal 2025 Guidance
Advance Auto Parts (NYSE:AAP) reported its fiscal first-quarter 2025 earnings on May 22, with net sales of $2.6 billion representing a 7% decrease compared to the same period last year. Management completed a rapid store footprint optimization during the period, delivered a near-breakeven adjusted operating margin, and remains focused on supply chain cost leverage, procurement savings, and pro channel strength through 2025 and beyond. It also reaffirmed its full-year guidance for 0.5% to 1.5% of comp sales growth to a range of $8.4 billion to $8.6 billion.
The company closed underperforming stores and finalized its optimization program in March, resulting in approximately 75% of its footprint now being concentrated in markets where it ranks No. 1 or No. 2 in store density. This pivot supports its planned expansion of over 100 new stores in the next three years and reduces operational complexity, a structural change not reflected in the company's recent performance.
This shift is expected to enhance resource efficiency and support future same-store sales growth.
Source Fool.com
