Advance Auto Parts Inc.
08/20/2026 | Press release | Distributed by Public on 08/20/2026 04:32
Advance Auto Parts Reports Second Quarter 2026 Results (Form 8-K)
Advance Auto Parts Reports Second Quarter 2026 Results
l Q2 2026 Adjusted Operating Income Margin Expands By Over 250 Basis Points Year-Over-Year
l Reaffirms Full Year 2026 Sales, Adjusted Operating Income Margin and Free Cash Flow Guidance
l Repurchased Debt; Net Leverage Moved Lower to 2.1x in Q2 2026 From 2.4x in Q1 2026
RALEIGH, N.C., August 20, 2026 - Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America, that serves both professional installer and do-it-yourself customers, announced its financial results for the second quarter ended July 18, 2026.
"During the second quarter, the Advance team maintained focus on executing our strategic initiatives to achieve solid profitability, while navigating a volatile demand environment and I thank the team for their hard work and commitment to serving our customers," said Shane O'Kelly, president and chief executive officer. "Our second quarter comparable sales results reflected low-single-digit growth in the Pro channel, which performed in line with expectations along with Main Street Pro trends outpacing overall Pro trends. However, total enterprise sales performance was impacted by the DIY channel as tighter household budgets constrained spending more than we anticipated, especially during the last four weeks of the quarter. The focus on executing our initiatives helped Advance achieve a significant milestone with the return to positive year to date free cash flow, following two years of outflows. We view this as an important proof point in our strategic journey as we work to create long-term value for our shareholders."
Second Quarter 2026 Results (1)
Second quarter 2026 net sales totaled $2.0 billion, compared with $2.0 billion in the second quarter of the prior year. Comparable store sales for the second quarter 2026 decreased 0.5%.
The Company's second quarter 2026 gross profit was $0.9 billion, or 46.2% of net sales compared with $0.9 billion, or 43.5% in the second quarter of 2025. Adjusted gross profit was $0.9 billion, or 46.2% of net sales in the second quarter of 2026 compared with $0.9 billion, or 43.8% in the second quarter of 2025. Second quarter 2026 adjusted gross profit included $26 million in refunds related to tariffs that were previously paid under the International Emergency Economic Powers Act (IEEPA). Excluding these refunds, the increase in gross profit as a percentage of net sales compared to the second quarter of 2025 was primarily driven by expansion in product margin supported by our merchandising initiatives.
The Company's second quarter 2026 selling, general and administrative (SG&A) expenses were $0.8 billion, or 41.1% of net sales compared with $0.9 billion, or 42.4% of net sales in the second quarter of 2025. Adjusted SG&A expenses were $0.8 billion, or 40.6% of net sales in the second quarter of 2026 compared with $0.8 billion, or 40.7% of net sales in the second quarter of 2025.
The Company's second quarter 2026 operating income was $101 million, or 5.1% of net sales, compared with $22 million, or 1.1% of net sales in the second quarter of 2025. Adjusted operating income was $112 million or 5.6% of net sales in the second quarter of 2026, compared with $61 million or 3.0% of net sales in the second quarter of 2025.
(1)
The Company calculates comparable store sales based on the change in store sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. The Company includes sales from relocated stores in comparable store sales from the original date of opening. Closed stores are not included in the comparable store sales calculation. Comparable store sales is intended only as supplemental information and is not a substitute for Net sales presented in accordance with accounting principles generally accepted in the United States of America ("GAAP").
The Company's second quarter 2026 diluted earnings per share was $0.90, compared with $0.25 in the second quarter of 2025. Adjusted diluted earnings per share was $1.03 in the second quarter of 2026, compared with $0.69 in the second quarter of 2025. Tariff refunds contributed approximately $0.31 to second quarter 2026 adjusted diluted earnings per share.
Capital Allocation
During the second quarter of 2026, the Company repurchased and retired approximately $30 million of principal outstanding debt.
On August 18, 2026, the Company declared a regular cash dividend of $0.25 per share to be paid on October 23, 2026 to all common stockholders of record as of October 9, 2026.
Full Year 2026 Guidance(1)
The Company has reaffirmed its full year 2026 guidance for net sales, comparable store sales, adjusted operating income margin, capital expenditures and free cash flow. Adjusted diluted EPS guidance has been revised to reflect higher pre-tax interest income. Full year guidance considers performance through the first half of 2026 including the receipt of tariff refunds and revised operating expectations for the second half of 2026. Additionally, the Company has revised its new store and market hub opening schedule for the year.
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As of August 20, 2026 |
Prior Guidance |
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($ in millions, except per share data) |
Low |
High |
Low |
High |
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Net sales |
$8,485 |
$8,575 |
$8,485 |
$8,575 |
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|
Comparable store sales (52 weeks)(2) |
1.00% |
2.00% |
1.00% |
2.00% |
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Adjusted operating income margin |
3.80% |
4.50% |
3.80% |
4.50% |
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|
Adjusted diluted EPS(3) |
$2.60 |
$3.30 |
$2.40 |
$3.10 |
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Capital expenditures |
Approx. $300 |
Approx. $300 |
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Free cash flow |
Approx. $100 |
Approx. $100 |
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Store growth |
||||||||
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Store Openings |
30 - 35 |
40 - 45 |
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Market hub openings |
15 - 20 |
10 - 15 |
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(1)
Adjusted operating income margin, Adjusted diluted EPS and Free cash flow are Non-GAAP measures. For a better understanding of the Company's Non-GAAP adjustments, refer to the reconciliation of Non-GAAP financial measures in the accompanying financial tables. The Company is not able to provide a reconciliation of these forward-looking Non-GAAP measures presented herein because it is unable to predict with reasonable accuracy the value of certain adjustments and as a result, the comparable GAAP measures are unavailable without unreasonable efforts.
(2)
Comparable store sales for fiscal 2026 is calculated based on an adjusted fiscal 2025 baseline to account for the 53rd week. The Company calculates comparable store sales based on the change in store sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. The Company includes sales from relocated stores in comparable store sales from the original date of opening. Comparable store sales is intended only as supplemental information and is not a substitute for Net sales presented in accordance with accounting principles generally accepted in the United States of America ("GAAP").
(3)
Includes pre-tax interest expense of approximately $210 million and pre-tax interest income of approximately $100 million.
Investor Conference Call
The Company will detail its results for the second quarter and full year 2026 via a webcast scheduled to begin at 8 a.m. Eastern Time on Thursday, August 20, 2026. The webcast will be accessible via the Investor Relations page of the Company's website (ir.AdvanceAutoParts.com).
To join by phone, please pre-register online for dial-in and passcode information. Upon registering, participants will receive a confirmation with call details and a registrant ID. While registration is open through the live call, the Company suggests registering a minimum 10 minutes before the start of the call. A replay of the conference call will be available on the Company's Investor Relations website for one year.
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. As of July 18, 2026, Advance operated 4,311 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 786 independently owned Carquest branded stores across these locations in addition to various Caribbean islands. Additional information about Advance, including employment opportunities, customer services, and online shopping for parts, accessories and other offerings can be found at www.AdvanceAutoParts.com.
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Investor Relations Contact: |
Media Contact: |
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Lavesh Hemnani |
Nicole Ducouer |
Advance Auto Parts Inc. published this content on August 20, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 20, 2026 at 10:32 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]