NYSE$AAP

Advance Auto Parts Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Advance Auto Parts reported Q2 2023 results with a slight increase in net sales but a decrease in comparable store sales. Profitability was below expectations due to pricing challenges, and the company announced leadership appointments and a strategic review.

Advance Auto Parts reported a 0.8% increase in net sales to $2.7 billion, driven by new store openings, but comparable store sales decreased by 0.6%. Operating income was $134.4 million, or 5.0% of net sales, and diluted EPS was $1.43. The company has initiated a comprehensive operational and strategic review.

  • Net sales increased by 0.8% to $2.7 billion, primarily due to new store openings.
  • Comparable store sales decreased by 0.6%.
  • Operating income was $134.4 million, representing 5.0% of net sales.
  • Diluted EPS was $1.43, compared to $2.38 in the prior year.

Headline financials

Total Revenue

$2.69B

Previous: $2.67B+0.8%
EPS (adj)

$1.43

Previous: $3.74-61.8%
Comparable Store Sales

-0.6%

Previous: -0.6%+0.0%
Capital Expenditures

-$145M

Previous: -$211M+31.4%
Free Cash Flow

-$59.5M

Previous: -$66.8M+10.9%
Net Income

$85.4M

Previous: $144M-40.9%
Operating Income

$134M

Previous: $202M-33.4%
Gross Profit

$1.15B

Previous: $1.19B-3.2%
Cash & Equivalents

$277M

Previous: $241M+15.2%
Total Assets

$12.3B

Previous: $12.1B+1.4%
Stock-Based Comp

$10.3M

Previous: $12.4M-17.0%

Revenue & EPS history

Advance Auto Parts · Revenue · Quarterly

$2.69B

Q2 2023+0.8%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Advance Auto Parts is updating its full-year guidance, anticipating a modest increase in net and comparable store sales growth, driven by a strengthening professional business. However, they are reducing the outlook for operating income margin rate, diluted earnings per share, and free cash flow due to competitive pricing, channel mix shifts, and team investments.

Tailwinds

  • Strengthening of professional business is expected to drive net and comparable store sales growth.
  • Commitment to maintaining competitive price targets.
  • Investments in the team to help retain top talent.
  • Focus on improving execution across the business.
  • Comprehensive operational and strategic review to position Advance for long-term success.

Headwinds

  • Reduced outlook for operating income margin rate.
  • Reduced outlook for diluted earnings per share.
  • Reduced outlook for free cash flow.
  • Additional headwinds anticipated in the back half of the year.
  • Impacts from a shift in channel mix.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.5%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-0.9%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+57.0%

Q1 2025

Best reaction

-39.4%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+13.3%+7.5%+17.3%
Q4 2025+1.1%-3.9%-11.1%
Q3 2025-8.4%-12.8%-5.9%
Q2 2025-7.5%-8.9%-1.2%
Q1 2025+57.0%+58.4%+57.8%
Q4 2024-17.8%-22.8%-15.1%
Q3 2024-7.9%-6.0%+7.1%
Q2 2024-20.6%-22.7%-33.8%
Q1 2024-4.6%-3.9%-9.8%
Q4 2023+4.3%+7.6%+31.4%
Q3 2023-8.5%-9.2%+7.4%
Q2 2023+0.8%-2.5%-14.5%
Q1 2023-39.4%-41.5%-37.3%
Q4 2022-1.3%-1.5%-15.7%
Q3 2022-15.0%-19.7%-22.1%
Q2 2022-9.4%-12.5%-17.3%
Q1 2022-0.9%+6.1%-4.0%
Q4 2021-0.2%-1.9%-6.9%
Q3 2021-1.4%-3.8%+0.0%
Q2 2021+2.2%-1.9%+3.0%
Q1 2021-1.8%-0.8%+8.4%
Q4 2020+5.9%+8.6%+20.2%
Q3 2020-0.1%-1.7%+1.0%
Q2 2020-0.1%-3.0%-3.9%
Q1 2020+3.5%+1.8%+12.7%
Q4 2019+4.9%+5.3%-35.6%
Q3 2019-6.1%-3.6%-7.5%
Q2 2019-4.0%-3.9%+9.2%
Q1 2019-0.9%-2.0%-5.0%
Q4 2018-2.3%-5.0%-0.5%
Q3 2018+6.4%+7.3%-0.5%
Q2 2018+9.1%+10.3%+15.1%
Q1 2018+3.4%+4.8%+17.1%
Q4 2017+4.9%+9.0%+5.2%
Q3 2017+11.3%+8.5%+21.8%
Q2 2017-16.3%-14.7%-8.5%
Q1 2017-6.2%-4.6%-14.9%
Q4 2016-1.2%-2.6%-6.7%
Q3 2016+13.3%+12.1%+18.3%
Q2 2016-5.8%-5.8%-11.2%
Q1 2016+1.8%
Q4 2015+1.6%
Q3 2015-17.0%
Q2 2015+8.7%
Q1 2015+6.9%
Q4 2014-7.5%
Q3 2014-5.0%
Q2 2014+6.9%
Q1 2014-1.2%
Q4 2013+12.9%
Q3 2013-0.1%
Q2 2013+1.1%
Q1 2013-2.8%
Q4 2012+8.2%
Q3 2012-1.7%
Q2 2012-2.8%
Q1 2012+1.3%
Q4 2009+1.4%
Q3 2011-1.3%
Q2 2011-0.6%
Q1 2011-1.0%
Q3 2010+0.3%
Q2 2010+0.8%
Q1 2010+2.2%
Q4 2010+2.2%

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