The earnings call highlighted the successful sale of Worldpac, a strategic plan for margin improvement, and resilience in the Pro segment. However, the company faced significant challenges with declining sales, store closures, and macroeconomic headwinds affecting performance.

Company Guidance

During the Q3 2024 earnings call for Advanced Auto Parts, the management provided comprehensive guidance on their strategic and financial goals through 2027. They aim to achieve an adjusted operating margin of approximately 7% by the end of 2027, driven by a 500 basis point improvement through merchandising excellence, internal supply chain transformation, and store efficiency. The call highlighted a decrease in net sales to $2.1 billion, a 3% drop from the previous year, with comparable store sales declining by 2.3%. The impact of the CrowdStrike system outage and Hurricane Helene was estimated to contribute a 50 basis point headwind to Q3 comps. Gross profit was reported at $908 million, or 42.3% of net sales, marking a 540 basis point improvement from the prior year, while adjusted SG&A was $891 million. The management outlined plans for more than 500 store closures and expected $60 million to $80 million in operating cost savings, contributing 70 to 90 basis points to margins in 2025, with further improvements expected from strategic vendor negotiations and supply chain optimization.

Successful Sale of Worldpac

Completed the sale of Worldpac, adding $1.5 billion of liquidity to the balance sheet, strengthening the financial position of the company.

Strategic Path Forward

Outlined a plan to achieve an adjusted operating margin of approximately 7% by year-end 2027, driven by merchandising excellence, supply chain transformation, and store efficiency.

Pro Segment Resilience

Pro sales showed a positive comp on a 2-year basis, indicating resilience and potential for growth in this segment.

Gross Margin Improvement

Gross profit from continuing operations was $908 million or 42.3% of net sales, an improvement of approximately 540 basis points over the prior year.

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Advance Auto Parts (AAP) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

AAP Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 26, 2025	2024 (Q4)	-1.31 / -	-0.59	―	―	―
Nov 14, 2024	2024 (Q3)	0.50 / -0.10	-0.82	87.80% (+0.72)	―
Aug 22, 2024	2024 (Q2)	0.92 / 0.75	1.43	-47.55% (-0.68)	―
May 29, 2024	2024 (Q1)	0.68 / 0.67	0.72	-6.94% (-0.05)	―
Feb 28, 2024	2023 (Q4)	0.21 / -0.59	2.88	-120.49% (-3.47)	―
Nov 15, 2023	2023 (Q3)	1.44 / -0.82	2.84	-128.87% (-3.66)	―
Aug 23, 2023	2023 (Q2)	1.66 / 1.43	3.74	-61.76% (-2.31)	―
May 31, 2023	2023 (Q1)	2.56 / 0.72	3.57	-79.83% (-2.85)	―
Feb 28, 2023	2022 (Q4)	2.41 / 2.88	2.07	39.13% (+0.81)	―
Nov 15, 2022	2022 (Q3)	3.27 / 2.84	3.21	-11.53% (-0.37)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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AAP Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 14, 2024	$40.94	$41.20	+0.64%
Aug 22, 2024	$61.51	$50.76	-17.48%
May 29, 2024	$69.43	$61.81	-10.98%
Feb 28, 2024	$63.85	$65.50	+2.58%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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