AAP · Advance Auto Parts, Inc.

Advance Auto Parts reported a strong first quarter, with comparable sales rising 3.5% year-over-year, the best performance in five years, driven by mid-single-digit growth in the professional installer (Pro) segment and low-single-digit growth in do-it-yourself (DIY). Gross profit margin expanded 220 basis points to 45.1%, supported by merchandising initiatives and the cycling of prior-year store optimization headwinds. Adjusted SG&A improved to 41.3% of sales from 43.2%, reflecting lower restructuring-related costs and better sales leverage. As a result, adjusted operating income swung to $99 million (3.8% margin) from a loss of $8 million (negative 0.3% margin) in the prior year. Adjusted diluted EPS of $0.77 contrasted with an adjusted loss per share of $(0.22) in Q1 2025. Management credited the team's operational execution and customer service focus. The company reaffirmed its full-year 2026 guidance, including net sales of $8.49–$8.58 billion, adjusted operating margin of 3.8%–4.5%, and adjusted diluted EPS of $2.40–$3.10. A quarterly dividend of $0.25 per share was declared. The solid start to the year and maintained outlook suggest confidence in achieving the strategic transformation.