Advance Auto Parts beats top-line and bottom-line estimates; lowers FY25 EPS outlook

* Advance Auto Parts press release [https://seekingalpha.com/pr/20200643-advance-auto-parts-reports-second-quarter-2025-results-and-reaffirms-full-year-sales] (NYSE:AAP [https://seekingalpha.com/symbol/AAP]): Q2 Non-GAAP EPS of $0.69 beats by $0.11.
* Revenue of $2.01B (-7.8% Y/Y) beats by $40M.
* Comparable store sales for the second quarter 2025 increased 0.1%.
* Adjusted operating income was $61 million, or 3.0% of net sales, compared with adjusted operating income of $62 million, or 2.8% in the second quarter of 2024.
* The Company's second quarter 2025 effective tax rate was 28.6%, compared with an effective tax rate of 29.5% in the second quarter of 2024.
* Net cash used in operating activities was $106 million through the second quarter of 2025 versus $39 million of cash provided by operating activities in the same period of the prior year.
* Free cash flow through the second quarter of 2025 was an outflow of $201 million compared with an outflow of $48 million in the same period of the prior year.
*
FULL YEAR 2025 GUIDANCE (53 WEEKS)

The Company has revised adjusted diluted EPS guidance to account for higher net interest expense related to its recent senior notes offering. Other guidance items remain unchanged, as shown in the table below. Full year 2025 guidance assumes current tariffs remain in place for the remainder of 2025.

As of August 14, 2025

($ in millions, except per share data)

Low

High

Net sales from continuing operations (1)

$8,400

$8,600 VS. CONSENSUS OF $8.52B

Comparable store sales (52 weeks) (2)

0.5%

1.5%

Adjusted operating income margin from continuing operations (4)

2.00%

3.00%

Adjusted diluted EPS from continuing operations (3,4)

$1.20

$2.20 (PRIOR $1.50 TO $2.50) VS. CONSENSUS OF $1.85

Capital expenditures

Approx. $300

Free cash flow (4)

$(85)

$(25)

New store growth

Store openings

30 new stores

Market hub openings

10 new market hubs

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