In Q4 2024, Advance Auto Parts Inc (AAP) reported a revenue of $1.996 billion, a decrease of 1% year-over-year as the company faced challenges from store closures and a disappointing consumer spending environment. The company experienced a net income loss of $414.8 million, equating to a diluted EPS of -$6.94. This decline in profitability prompted management to implement a three-year strategic plan aimed at enhancing operational efficiencies and boosting sales growth, focusing particularly on improving parts availability and customer service.
Management expressed optimism about stabilizing operations, reinforced their commitment to core business strategies, and highlighted liquidity improvements stemming from the Worldpac divestiture. CEO Shane O’Kelly emphasized the significance of a new merchandising framework and supply chain enhancements, which have begun to show early positive results. While still navigating headwinds, Advance aims to return to a growth trajectory gradually through 2025 and beyond.