"We have spent the last several months analyzing how Advance got here, and we now have a better understanding of the work required to change our trajectory."
— Shane O'Kelly (CEO)
03Detailed Report
AAP
Advance Auto Parts Inc
Period
Q4 2023
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 18, 2026
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Executive Summary
In Q4 2023, Advance Auto Parts Inc (AAP) reported a revenue of $2.46 billion, a decrease of 0.4% year-over-year (YoY) and a substantial drop of 27.6% quarter-over-quarter (QoQ). The company experienced a net loss of $35.13 million, translating to an EPS of -$0.59. Management attributed these poor results to ongoing operational challenges, particularly in the do-it-yourself (DIY) market. To address these issues and return to profitable growth, management has outlined decisive steps including the sale of Worldpac and reductions in General and Administrative expenses. CEO Shane O'Kelly emphasized the need for a rigorous focus on core operations: "All actions we are taking are geared to help us focus on the fundamentals of selling auto parts."
Key Performance Indicators
Revenue
Decreasing
2.46B
QoQ: -27.64% | YoY: -9.35%
Gross Profit
Decreasing
950.84M
38.58% margin
QoQ: -33.46% | YoY: -3.63%
Operating Income
Decreasing
-48.57M
QoQ: -156.46% | YoY: -11.15%
Net Income
Increasing
-35.13M
QoQ: -187.79% | YoY: 27.77%
EPS
Increasing
-0.59
QoQ: -188.06% | YoY: 28.05%
Revenue Trend
Margin Analysis
Financial Highlights
Key metrics from the Q4 2023 results showcase significant challenges: 1. Revenue: $2.46 billion (YoY down 0.4%, QoQ down 27.6%).
2. Gross Profit: $950.84 million (Gross Margin at 38.6%, down 504 basis points).
3. Operating Income: -$48.57 million (Operating Margin -1.97%, down 679 basis points).
4. Net Income: -$35.13 million (Net Margin -1.43%).
5. Free Cash Flow: $44 million, reflecting a decrease driven by lower net income despite reduced capital expenditure.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.46B
-9.35%
-27.64%
Gross Profit
950.84M
-3.63%
-33.46%
Operating Income
-48.57M
-11.15%
-156.46%
Net Income
-35.13M
27.77%
-187.79%
EPS
-0.59
28.05%
-188.06%
Key Financial Ratios
Gross Profit Margin
Fair
38.60%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.02%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.01%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.20
Current ratio meets minimum requirements but limited cushion
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