Companies /Consumer Cyclical

Advance Auto Parts Inc

NYSE: AAP Auto Parts
$42.80
▲ $0.04 (+0.09%) today
Markets closed · 4:42am ET

Q3 2025 Earnings

Reported Oct 30, 2025, 6:31am ET · SEC source
$0.92
Beat +23.41%
EPS · est. $0.75
$2.0B
Beat +0.65%
Revenue · est. $2.0B
+3.7%
Beating market
AAP vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−20%0+20%Oct 30Oct 31report 6:31am ETearnings−0.6%−20.2%
−20%0+20%Oct 30Oct 31earnings−0.6%−20.2%
AAP −20.2%S&P 500 −0.6%
−20%0+20%Oct 30Oct 31report 6:31am ETearnings−0.8%−20.2%
−20%0+20%Oct 30Oct 31earnings−0.8%−20.2%
AAP −20.2%NASDAQ −0.8%
−20%−10%0+10%Oct 29Nov 6report 6:31am ETearnings−2.1%−18.2%
−20%−10%0+10%Oct 29Nov 6earnings−2.1%−18.2%
AAP −18.2%S&P 500 −2.1%
−20%−10%0+10%Oct 29Nov 6report 6:31am ETearnings−3.4%−18.2%
−20%−10%0+10%Oct 29Nov 6earnings−3.4%−18.2%
AAP −18.2%NASDAQ −3.4%
−8.04%
Day of report
−7.04%
Next session
−6.37%
One week
+3.93%
30 days

S&P 500 over the same 30 days: +0.25%.

Did AAP Beat Earnings? Q3 2025 Results

Advance Auto Parts delivered a sharp turnaround in its fiscal third quarter, posting adjusted diluted EPS of $0.92 compared to a loss of $0.05 a year ago, as an aggressive store-closure program began translating into meaningful margin recovery. Net sales came in at $2.04 billion, down from $2.15 billion in the prior-year period, reflecting the deliberate closure of 517 stores as part of the company's footprint optimization, but the leaner network drove adjusted gross margin to 44.8% from 42.3% and pushed adjusted operating income to $90.00 million, versus just $16.00 million a year ago. Comparable store sales grew 3.0%, with both the Professional installer and DIY channels contributing positively. Results were partially weighed down by a $28.00 million charge tied to a supplier's Chapter 11 bankruptcy filing. The company reaffirmed the midpoint of its full-year guidance, targeting net sales of $8.55 billion to $8.60 billion and adjusted diluted EPS of $1.75 to $1.85, with roughly 200 basis points of annual margin expansion expected in this first year of its turnaround.

Key Takeaways
  • 3.0% comparable store sales growth led by Pro channel strength
  • DIY channel also delivered positive comparable sales growth
  • Adjusted gross profit margin expanded to 44.8% from 42.3% driven by footprint optimization savings and strategic sourcing initiatives reducing product costs
  • Adjusted SG&A margin improved to 40.4% from 41.5% due to operating fewer stores
  • Adjusted operating income margin expanded to 4.4% from 0.7% year-over-year

“We delivered our strongest quarterly performance in over two years, thanks to the team's determination, commitment to our turnaround objectives, and their dedication to serving our customers.”

Advance Auto Parts CEO, on the earnings call

Forward Guidance & Outlook

The company reaffirmed the midpoint of full-year 2025 guidance (53-week year) while narrowing the ranges. Updated guidance calls for net sales of $8,550M to $8,600M (including approximately $100M to $120M from the 53rd week), comparable store sales growth of 0.7% to 1.3% (on a 52-week basis), adjusted operating income margin of 2.4% to 2.6%, adjusted diluted EPS of $1.75 to $1.85, capital expenditures of approximately $250M, free cash flow of ($90M) to ($80M), 30 new store openings, and 14 new market hub openings. Guidance assumes current tariffs remain in place for the remainder of 2025. The company expects approximately 200 basis points of annual margin expansion in the first year of its turnaround.

AAP YoY Financials

Revenue$2.0B
Gross Profit$881.0M
Operating Income$22.0M
Net Income$-1,000,000

Figures from SEC filings and company reports. Not investment advice.