Shane O'Kelly: "After a challenging start to the year for the industry, we began to see demand rebound in late February led by our Pro business. This positive momentum in Pro has continued during the first 4 weeks of Q2."
— Shane O'Kelly
03Detailed Report
AAP
Advance Auto Parts Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
In Q1 2025, Advance Auto Parts (AAP) reported revenues of $2.583 billion, reflecting a 7% year-over-year decrease mainly due to strategic store optimizations that affected comparable sales. Despite a challenging start to the year, management highlighted a rebound in demand, particularly in the Professional (Pro) channel, which experienced positive comparable sales growth for eight consecutive weeks. While the company reported a GAAP net income of $24 million, the adjusted operating loss was $8 million, narrowing compared to the previous quarter. Management reaffirmed its full-year guidance, citing operational improvements and the expected positive impact of cost reductions. These developments position Advance Auto Parts favorably within the $150 billion addressable market, setting the stage for more robust growth as the company continues to navigate a competitive landscape.
Key Performance Indicators
Revenue
Increasing
2.58B
QoQ: 29.41% | YoY: 4.79%
Gross Profit
Increasing
1.11B
42.93% margin
QoQ: 219.49% | YoY: 16.63%
Operating Income
Decreasing
-131.00M
QoQ: 84.02% | YoY: -169.74%
Net Income
Increasing
24.00M
QoQ: 105.79% | YoY: 168.32%
EPS
Increasing
0.40
QoQ: 105.76% | YoY: 167.80%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $2.583 billion (YoY -7%, QoQ +29%)
- Gross Profit: $1.11 billion, 42.9% of net sales (YoY -50 bps)
- Operating Loss: $8 million (compared to last quarter's larger losses)
- Net Income: $24 million (YoY +168%)
- EPS: $0.40 (primarily due to tax benefits)
- Cash and Cash Equivalents: $1.672 billion
- Total Liabilities: $8.42 billion
- Free Cash Flow: -$198 million
- Store Density: 75% of stores are in markets where AAP is #1 or #2 in store density.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.58B
4.79%
29.41%
Gross Profit
1.11B
16.63%
219.49%
Operating Income
-131.00M
-169.74%
84.02%
Net Income
24.00M
168.32%
105.79%
EPS
0.40
167.80%
105.76%
Key Financial Ratios
Current Ratio
Adequate
1.27
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.67
Debt-to-equity indicates high leverage and elevated financial risk
Price to Book
Undervalued
0.87x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
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