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Investing.com -- Advance Auto Parts saw its stock surge 21% premarket after reporting better-than-expected first quarter earnings and revenue, while also reaffirming its full-year guidance. The automotive aftermarket parts provider demonstrated resilience in a challenging economic environment.
For the first quarter ended April 19, 2025, Advance Auto Parts (NYSE:AAP) reported an adjusted loss per share of $0.22, significantly beating analyst estimates of a $0.69 loss. Revenue came in at $2.58 billion, surpassing the consensus forecast of $2.51 billion. However, this represents a decline from $2.8 billion in the same quarter last year.
Comparable store sales decreased 0.6% YoY, excluding store closing sales at over 500 corporate locations that were shuttered as part of the company’s optimization program. Gross profit margin contracted to 42.9% from 43.4% in the prior-year quarter, primarily due to liquidation sales at closing stores.
"The Advance team delivered better than expected sales and profitability in the first quarter," said Shane O’Kelly, president and CEO. "During the quarter, we also successfully completed our store footprint optimization within an accelerated timeframe, while continuing to make progress on our other strategic initiatives."
Despite the challenging economic backdrop, including recently implemented tariffs, Advance Auto Parts reaffirmed its full-year 2025 guidance. The company expects net sales between $8.4 billion and $8.6 billion, with comparable store sales growth of 0.5% to 1.5%. Adjusted earnings per share are projected to be in the range of $1.50 to $2.50 compared to the consensus estimate of $1.54.