"We have moved with urgency to execute store closures... We are in the early stages of stabilizing our operations and expect results to gradually improve as we move through 2025."
— Shane O’Kelly, CEO
03Detailed Report
AAP
Advance Auto Parts Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 24, 2026
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Executive Summary
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.
Key Performance Indicators
Revenue
Decreasing
2.00B
QoQ: -7.07% | YoY: -41.40%
Gross Profit
Decreasing
347.12M
17.39% margin
QoQ: -61.77% | YoY: -75.71%
Operating Income
Decreasing
-820.00M
QoQ: -203 574.44% | YoY: -1 053.26%
Net Income
Decreasing
-414.78M
QoQ: -6 796.86% | YoY: -1 136.63%
EPS
Decreasing
-6.94
QoQ: -6 840.00% | YoY: -1 135.82%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Performance Overview
- Q4 Revenue: $1.996 billion (-1% YoY)
- Gross Profit: $347.1 million (Gross Margin: 17.3%)
- Net Income: $-414.8 million (Net Margin: -20.8%)
- EBITDA: $-731.7 million
- EPS: $-6.94
### Ratios and Efficiency Metrics
- Current Ratio: 1.317
- Debt to Equity Ratio: 1.699
- Operating Income Ratio: -41.1%
- Cash Conversion Cycle: 35.68 days
- Moving to strategic actions: Management forecasts an adjusted operating margin of 7% by 2027, suggesting a strategy aimed at significant improvement in operational efficiency and sales growth.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.00B
-41.40%
-7.07%
Gross Profit
347.12M
-75.71%
-61.77%
Operating Income
-820.00M
-1 053.26%
-203 574.44%
Net Income
-414.78M
-1 136.63%
-6 796.86%
EPS
-6.94
-1 135.82%
-6 840.00%
Key Financial Ratios
Gross Profit Margin
Weak
17.40%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.41%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.21%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.04%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.19%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.32
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.70
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-1.59x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.21x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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