MW Advance Auto Parts' stock skids as retailer predicts weak sales next quarter

By Steve Gelsi

Retailer's Q4 revenue and adjusted loss deliver a beat over analyst expectations, but its outlook is mixed.

Advance Auto Parts Inc.'s stock was down 3% in premarket trading after the auto-parts retailer issued a soft outlook for first-quarter same-store sales, but beat analyst estimates for its fourth-quarter revenue and adjusted profit.

It's also in the middle of a restructuring plan that will result in the closing of 500 stores. Meanwhile, the Raleigh, N.C.-based company plans to open 60 market hub locations by the middle of 2027.

Advance Auto Parts $(AAP.AU)$ said it expects first-quarter same-store sales to fall 2%, below the FactSet consensus estimate for a drop of 0.7%.

It's expecting first-quarter revenue of $2.5 billion, below the analyst estimate of $2.62 billion.

For 2025, it's targeting adjusted earnings of between $1.50 a share and $2.50 a share, while analysts expect adjusted earnings of $1.55 a share.

For the fourth quarter, Advance Auto Parts reported an adjusted loss of $1.18 a share, better than the analyst estimate for a loss of $1.26 a share.

Revenue dropped 0.9% to $2 billion, ahead of the analyst estimate of $1.93 billion.

Comparable-store sales don't include store-closing sales at the more than 500 corporate locations that will be closing under our restructuring plan.

Ahead of Wednesday's moves, Advance Auto Parts' stock was down 3% in 2025, while the S&P 500 has gained 1.3%.

(This is a developing news story with updates coming.)

-Steve Gelsi

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February 26, 2025 07:31 ET (12:31 GMT)

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