AAP
Advance Auto Parts Inc
Q1 2025 Report
Advance Auto Parts Inc (AAP) Q1 2025 Earnings: Navigating Challenges and Building Momentum...
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Executive Summary
During Q2 2024, Advance Auto Parts Inc (AAP) reported revenue of $2.68 billion, reflecting flat growth year-over-year, while net income declined to $44.99 million. The company's performance was challenged by macroeconomic headwinds, including lower consumer spending and changes in its store operations, particularly the decline of independent Carquest locations. However, there were notable signs of stabilization, including a positive comparable sales growth of 0.4%, primarily driven by its pro-business segment, which suggests potential for recovery as strategic initiatives begin to take effect. CEO Shane O'Kelly emphasized the focus on improving operational efficiencies and strategic pricing, indicating cautious optimism about the company’s future trajectory despite current challenges.
Key Performance Indicators
Revenue
2.68B
QoQ: 8.85% | YoY:8.85%
Gross Profit
1.11B
41.53% margin
QoQ: 17.19% | YoY:17.19%
Operating Income
71.75M
QoQ: 247.74% | YoY:247.74%
Net Income
44.99M
QoQ: 228.08% | YoY:228.08%
EPS
0.75
QoQ: 227.12% | YoY:227.12%
Revenue Trend
Margin Analysis
Key Insights
- **Q2 Revenue**: $2.68 billion (flat YoY)
- **Gross Profit**: $1.11 billion (41.5% margin)
- **Operating Income**: $71.8 million (2.7% margin)
- **Net Income**: $44.99 million (down from $69.1 million YoY)
- **EPS**: $0.75 (down from $1.32 YoY)