Thu, May 22, 8:02 PM (21 days ago)
**Advance Auto Parts, Inc. (AAP) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2,583 million, a 6.8% decrease YoY due to store closures under the 2024 Restructuring Plan. - **Gross Profit Margin:** 42.9%, a 50 basis points decrease YoY. - **Operating Income:** $(131) million, a significant decrease due to restructuring expenses. - **Net Income:** $24 million, a decrease from $40 million YoY. - **EPS:** $0.40, up from $0.29 YoY. - **Cash Flow:** Net cash used in operating activities was $(156) million, primarily due to restructuring payments and decreased working capital. **Key Metrics & Trends:** - **Store Count:** 4,285 stores as of Q1 2025, down from 4,788 due to restructuring. - **Comparable Store Sales:** Declined 0.6% YoY. - **SG&A Expenses:** $1,240 million, up 648 basis points as a percentage of net sales. - **Restructuring Expenses:** $118 million, related to the 2024 Restructuring Plan. - **Debt:** $1,790 million in long-term debt, with $299 million due in 2026. **Future Operations & Uncertainties:** - **Restructuring:** AAP expects to incur additional $75-$100 million in restructuring expenses by the end of 2025. - **Tariffs:** New global trade tariffs may impact business, with uncertain ultimate effects. - **Credit Facilities:** AAP has $885 million in borrowing availability and is compliant with financial covenants. - **Dividends:** Dividends are at the discretion of the Board and restricted from increasing under the 2021 Credit Agreement. **Management's Outlook:** - AAP is focused on improving customer experience, margin expansion, and consistent execution. - The company remains confident in the long-term growth prospects of the automotive parts industry. - AAP's liquidity and capital resources are expected to meet working and other capital requirements for at least the next 12 months.