Advance Auto Parts (AAP)

Advance Auto Parts Introduces New ‘Good Parts’ Brand Campaign, Celebrating Customers’ Life Moments, Miles and MilestonesMay 26, 2026 8:45 AM
Business Wire Multi-channel campaign uses nostalgia, features real motorists to emotionally connect with Americans Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installers and do-it-yourself customers, today introduced “Good Parts,” a new brand campaign that heroes and humanizes the qualities of American motorists and Advance’s commitment to get them where they want to be – the good parts of their lives. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260526945751/en/Advance Auto Parts introduced “Good Parts,” a new brand campaign that heroes and humanizes the qualities of American motorists and Advance’s commitment to get them where they want to be – the good parts of their lives. The new campaign aligns with the celebration of America’s 250th birthday. Advance’s “Good Parts” campaign is anchored by a 60-second video that emotionally connects the company’s 94-year history to motorists through a nostalgic lens, drawing from familiar life moments and timeless cues highlighting the trips, memories and milestones experienced in America’s modern history. “Good Parts is a return to our roots and focuses on what matters most in our business: helping people get back on the road quickly and back to their lives,” said Bruce Starnes, Chief Merchandising Officer at Advance Auto Parts. “America is a country built on movement and Advance has been around almost as long as Americans have been driving. We’re proud of our legacy of helping millions of people advance to what matters most to them.” The campaign launches as Americans prepare for summer travel – a natural inflection point for automobile maintenance needs. Authenticity is the engine of the “Good Parts” campaign, which was shot at eight locations in four cities and includes real motorists. Advance will air general market and Spanish-language versions of the “Good Parts” video across multiple social media platforms, including Meta, TikTok and Reddit, as well as on YouTube and connected TV, display and search advertising, and audio platforms, including Spotify and Pandora. “Good Parts” will also greet customers who visit Advance’s more than 4,000 stores across America with nostalgia-inspired exterior signage, in-store signage and point-of-sale materials. And on May 31, Advance will display “Good Parts” creative in a full paint scheme on the Team Penske No. 12 Ford Mustang Dark Horse piloted by NASCAR Cup Series Champion Ryan Blaney in the Cracker Barrel 400 at Nashville Superspeedway. As part of the new brand campaign, Advance is introducing a new jingle that translates the company’s commitment to getting customers to the good parts into an auditory signature reflecting three core brand pillars: ease, confidence and forward momentum. The jingle is part of the 60-second video and will air across all media channels and digital touchpoints. About Advance Auto Parts Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of April 25, 2026, Advance operated 4,308 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 797 independently owned Carquest branded stores across these locations in addition to Mexico and 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260526945751/en/ Media Contacts
Nicole Ducouer
t: 304-685-2393
e: nicole.ducouer @paulmk-1258
e: rich.ellis@advance-auto.com Original: Advance Auto Parts Introduces New ‘Good Parts’ Brand Campaign, Celebrating Customers’ Life Moments, Miles and Milestones

Advance Auto Parts shares slide despite earnings beat as outlook disappoints investors (AAP)May 21, 2026 8:48 AM
IH Market News Advance Auto Parts (NYSE:AAP) shares fell 5.8% after the company reported first-quarter results ahead of analyst expectations but maintained a full-year earnings outlook that came in below Wall Street forecasts.The automotive parts retailer posted adjusted earnings per share of US$0.77 for the quarter, exceeding analyst estimates of US$0.43 by US$0.34.Revenue totaled US$2.6 billion, slightly above the consensus forecast of US$2.57 billion and broadly unchanged from the same period last year.Comparable store sales increased 3.5%, marking the company’s strongest comparable sales performance in five years.The company said growth was supported by mid-single-digit gains in its professional installer business, while do-it-yourself sales posted low-single-digit growth.Despite the stronger quarterly performance, investors reacted negatively to the company’s forward guidance.Advance Auto Parts reaffirmed fiscal 2026 adjusted earnings per share guidance of between US$2.40 and US$3.10.The midpoint of the range, US$2.75 per share, came in below the analyst consensus forecast of US$2.80.The company also maintained its full-year revenue outlook of between US$8.49 billion and US$8.58 billion, with the midpoint of US$8.54 billion slightly below Wall Street expectations of US$8.55 billion.First-quarter adjusted operating margin improved by 410 basis points year-on-year to 3.8%, helped by stronger product margins linked to merchandising initiatives and easier comparisons following the company’s 2024 store optimisation programme.Gross profit margin increased to 45.1%, up from 42.9% in the same quarter last year.“2026 is off to a solid start and we remain on track to execute our strategic priorities for the year,” said Shane O’Kelly, president and chief executive officer.“These results were driven by a sequential improvement in transactions reflecting the unwavering focus of our team to deliver strong customer service.”Advance Auto Parts also declared a regular quarterly dividend of US$0.25 per share, payable on July 24 to shareholders on record as of July 10.For fiscal 2026, the company expects comparable store sales growth of between 1% and 2% and plans to open between 40 and 45 new stores.Advance Auto Parts Original: Advance Auto Parts shares slide despite earnings beat as outlook disappoints investors (AAP)

Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 GuidanceMay 21, 2026 6:30 AM
Business Wire Q1'26 Comparable Sales Growth Of 3.5%; Strongest Performance in Five Years Q1'26 Adjusted Operating Income Margin Expands 410 bps Year-over-Year to 3.8% 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 first quarter ended April 25, 2026. "2026 is off to a solid start and we remain on track to execute our strategic priorities for the year,” said Shane O'Kelly, president and chief executive officer. "During the quarter, comparable sales grew by 3.5% including mid-single-digit growth in Pro and low-single-digit growth in DIY. These results were driven by a sequential improvement in transactions reflecting the unwavering focus of our team to deliver strong customer service. I thank the Advance team for their hard work in the quarter and their commitment to strong operational execution, which is driving stronger asset productivity and margin expansion." First Quarter 2026 Results (1) First quarter 2026 net sales totaled $2.6 billion, compared with $2.6 billion in the first quarter of the prior year. First quarter 2025 net sales included approximately $51 million related to sales at stores closed during Q1'25 as a result of our optimization program associated with our 2024 Restructuring Plan. Comparable store sales for the first quarter 2026 increased 3.5%. The Company's first quarter 2026 gross profit was $1.2 billion, or 45.1% of net sales compared with $1.1 billion, or 42.9% in the first quarter of 2025. Adjusted gross profit was $1.2 billion, or 45.1% of net sales compared with $1.1 billion, or 42.9% in the first quarter of 2025. The increase in gross profit as a percentage of net sales compared to the first quarter of 2025, was primarily driven by expansion in product margin supported by our merchandising initiatives and cycling of approximately 90 basis points of atypical margin headwind related to the store optimization program associated with our 2024 Restructuring Plan, that was completed in the first quarter of 2025. The Company's first quarter 2026 selling, general and administrative (SG&A) expenses were $1.1 billion, or 42.5% of net sales compared with $1.2 billion, or 48.0% of net sales in the first quarter of 2025. Adjusted SG&A expenses were $1.1 billion, or 41.3% of net sales in the first quarter of 2026 compared with $1.1 billion, or 43.2% of net sales in the first quarter of 2025. The reduction in SG&A expenses as a percentage of net sales compared to the first quarter of 2025, was driven by cycling of approximately $37 million in expenses related to stores closed during the first quarter of 2025 as a result of our optimization program associated with our 2024 Restructuring Plan; and stronger sales performance compared to the first quarter of 2025. The Company's first quarter 2026 operating income was $69 million, or 2.6% of net sales, compared with operating loss of $131 million, or (5.1)% of net sales in the first quarter of 2025. Adjusted first quarter 2026 operating income was $99 million or 3.8% of net sales, compared with a loss of $8 million or (0.3)% of net sales in the first quarter of 2025. The Company's diluted earnings per share was $0.39, compared with $0.40 in the first quarter of 2025. The Company's adjusted diluted earnings per share was $0.77, compared with loss of $(0.22) in the first 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"). Capital Allocation On May 19, 2026, the Company declared a regular cash dividend of $0.25 per share to be paid on July 24, 2026 to all common stockholders of record as of July 10, 2026. Full Year 2026 Guidance(1)     As of May 21, 2026 ($ in millions, except per share data)   Low   High Net sales   $8,485   $8,575 Comparable store sales (52 weeks)(2)   1.00%   2.00% Adjusted operating income margin   3.80%   4.50% Adjusted diluted EPS(3)   $2.40   $3.10 Capital expenditures   Approx. $300 Free cash flow   Approx. $100           Store growth     Store Openings   40 - 45 Market hub openings   10 - 15 (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 $80 million. Investor Conference Call The Company will detail its results for the first quarter and full year 2026 via a webcast scheduled to begin at 8 a.m. Eastern Time on Thursday, May 21, 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 installer and do-it-yourself customers. As of April 25, 2026, Advance operated 4,308 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 797 independently owned Carquest branded stores across these locations in addition to Mexico and 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. Forward-Looking Statements Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “target,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the Company’s strategic initiatives, future business and financial performance, revenue, earnings, cash flow, liquidity, restructuring and asset optimization plans, financial objectives, debt capital structure, operational plans and objectives, capital expenditures, organizational changes, cost reductions, expectations for macroeconomic conditions, marketing strategies, inflation, impairments, consumer behavior and preferences, labor costs and availability, supply chain and merchandising strategies and effects, technology investments, effective tax rates, regulatory changes and impacts, anticipated impacts of tariffs and other trade barriers, compliance with debt covenants, statements about the status of, and capacity and utilization under, the Company’s supply chain financing arrangements and statements about the Company’s future credit ratings and outlook as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the Company’s views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the Company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, the Company’s ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, risks associated with the Company’s restructuring and asset optimization plans, risks relating to incurrence of indebtedness and increased leverage, risks relating to the Company's credit ratings or perceived creditworthiness, deterioration of general macroeconomic conditions, geopolitical factors, including increased tariffs, petroleum supply and prices, and trade restrictions, the highly competitive nature of the industry, demand for the Company’s products and services, risks relating to the impairment of assets, including intangible assets such as goodwill, access to financing on favorable terms, complexities in the Company’s inventory and supply chain, implementation and operation of information and technology systems and innovative technologies, and challenges with transforming and growing its business. Please refer to “Item 1A. Risk Factors” of the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by the Company’s subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in millions), (unaudited)(1)   Assets   April 25, 2026     January 3, 2026   Current assets:             Cash and cash equivalents   $ 2,956     $ 3,123   Receivables, net     402       380   Inventories, net     3,815       3,646   Other current assets     128       141   Total current assets     7,301       7,290   Property and equipment, net     1,253       1,269   Operating lease right-of-use assets     2,131       2,157   Goodwill     600       600   Other intangible assets, net     399       400   Other assets     115       110   Total assets   $ 11,799     $ 11,826   Liabilities and Stockholders' Equity             Current liabilities:             Accounts payable   $ 3,054     $ 2,977   Accrued expenses     630       756   Other current liabilities     423       443   Total current liabilities     4,107       4,176   Long-term debt     3,414       3,412   Operating lease liabilities     1,813       1,812   Deferred income taxes     153       142   Other long-term liabilities     99       86   Total liabilities     9,586       9,628   Total stockholders' equity     2,213       2,198   Total liabilities and stockholders' equity   $ 11,799     $ 11,826   (1) This condensed consolidated balance sheet has been prepared on a basis consistent with the Company's previously prepared balance sheets filed with the Securities and Exchange Commission ("SEC"), but does not include the footnotes required by accounting principles generally accepted in the United States of America (“GAAP”). Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in millions, except per share data), (unaudited)(1)     Sixteen Weeks Ended     April 25, 2026     April 19, 2025   Net sales $ 2,614     $ 2,583   Cost of sales   1,434       1,474   Gross profit   1,180       1,109   Selling, general and administrative expenses, exclusive of restructuring expenses   1,079       1,122   Restructuring and related expenses   32       118   Selling, general and administrative expenses   1,111       1,240   Operating income (loss)   69       (131 ) Other, net:           Interest expense   (65 )     (27 ) Other income, net   31       27   Total other, net   (34 )     -   Income (loss) before income tax expense   35       (131 ) Income tax expense (benefit)   11       (155 ) Net income $ 24     $ 24               Basic earnings per common share $ 0.40     $ 0.40   Basic weighted-average common shares outstanding   60.1       59.8               Diluted earnings per common share $ 0.39     $ 0.40   Diluted weighted-average common shares outstanding   60.9       60.2   (1) These condensed consolidated statements of operations have been prepared on a basis consistent with the Company's previously prepared statements of operations filed with the SEC, but does not include the footnotes required by GAAP. Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in millions), (unaudited)(1)       Sixteen Weeks Ended       April 25, 2026     April 19, 2025   Cash flows from operating activities:             Net income   $ 24     $ 24   Adjustments to reconcile net income to net cash used in operating activities:             Depreciation and amortization     74       89   Share-based compensation     12       11   Loss on sale and impairment of long-lived assets     3       10   Expected future credit losses, net     4       9   Provision for deferred income taxes     11       (22 ) Other, net     18       3   Net change in:             Receivables, net     (25 )     42   Inventories, net     (171 )     (114 ) Operating lease right-of-use assets     24       50   Other assets     6       (69 ) Accounts payable     78       14   Accrued expenses     (52 )     (119 ) Operating lease liabilities     (36 )     (81 ) Other liabilities     11       (3 ) Net cash used in operating activities     (19 )     (156 ) Cash flows from investing activities:             Purchases of property and equipment     (56 )     (42 ) Proceeds from sales of property and equipment     1       15   Other, net     (2 )     -   Net cash used in investing activities of continuing operations     (57 )     (27 ) Net cash used in investing activities of discontinued operations     (55 )     -   Net cash used in investing activities     (112 )     (27 ) Cash flows from financing activities:             Dividends paid     (30 )     (15 ) Other, net     (7 )     (2 ) Net cash used in financing activities     (37 )     (17 )               Effect of exchange rate changes on cash     1       3                 Net decrease in cash and cash equivalents     (167 )     (197 ) Cash and cash equivalents, beginning of period     3,123       1,869   Cash and cash equivalents, end of period   $ 2,956     $ 1,672     (1) This condensed consolidated statement of cash flows has been prepared on a basis consistent with the Company's previously prepared statements of operations filed with the SEC, but does not include the footnotes required by GAAP. Reconciliation of Non-GAAP Financial Measures The Company uses certain Non-GAAP financial measures described below to supplement the Company's unaudited condensed consolidated financial statements prepared and presented in accordance with GAAP and to understand and evaluate the Company's core operating performance. These Non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented as the Company believes that such Non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. The Company is presenting these Non-GAAP metrics to provide investors insight to the information used by our management to evaluate our business and financial performance. The Company believes that these measures provide investors increased comparability of our core financial performance over multiple periods with other companies in our industry. The Company's Non-GAAP financial measures include Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Selling, General and Administrative expense (“Adjusted SG&A”), Adjusted SG&A Margin, Adjusted Operating Income (loss), Adjusted Operating Income (loss) Margin, Adjusted Net Income (loss), Adjusted Diluted Earnings (loss) Per Share (“Adjusted Diluted EPS”), Free Cash Flow and Adjusted Net Debt to Adjusted EBITDAR ("Net Leverage Ratio"), and should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purpose of analyzing operating performance, financial position or cash flows. The Company has presented these Non-GAAP financial measures as the Company believes that the presentation of the financial results that exclude the categories of expenses and income listed below provide useful and indicative information about the performance of the Company's base operations because the expenses and income vary from period to period in terms of size, nature and significance. The Company also adjusts for the income tax impact of these Non-GAAP adjustments using the estimated tax rate in effect for the respective Non-GAAP adjustments. Included below is a description of the categories of expenses and income that the Company has determined are not normal, recurring cash operating expenses necessary to operate the Company’s business. Restructuring and other related expenses: Expenses directly incurred relating to announced restructuring initiatives. These expenses include severance expense, retention bonuses, incremental reserves related to the collectibility of receivables (inclusive of notes receivable) and third-party professional services expenses incurred for services provided in assisting in the development and execution of the plan(s). These expenses also include certain costs related to the distribution network optimization plan for the conversion of the stores and distribution centers to market hubs, including realized losses on liquidated inventory, temporary labor, nonrecurring professional service fees and team member severance. Impairments and write-down of assets: Expenses relating to the impairment of certain assets, including operating lease right-of-use ("ROU") assets, property and equipment, goodwill and intangible assets. These expenses also include incremental depreciation as a result of accelerating long-lived assets over a shorter useful life, ROU asset amortization after store closure, and incremental lease abandonment expenses as a result of accelerating ROU asset amortization for leases the Company expects to exit before the end of the contractual term, net of gains on lease terminations. Other items: Expenses primarily relating to nonrecurring services rendered by third-party vendors engaged to perform strategic business review and transformational activities, expense incurred related to acquisitions and divestitures including third-party transaction related expenses, transition services agreement expenses and income, and certain other expenses not viewed as normal cash operating expenses. In fiscal 2025, these expenses also included a non-cash charge related to expected future credit losses on vendor receivables due from a vendor that filed voluntary petitions for Chapter 11 bankruptcy protection. Other items also include certain tax items, both expenses and benefits, that are unrelated to the fiscal year in which they are recorded and are excluded in order to provide a clearer understanding of the Company’s ongoing Non-GAAP tax rate and after-tax earnings. Reconciliation of GAAP Results to Non-GAAP Results:       Q1 2026     GAAP Results   GAAP
Margin(1)   Restructuring
and Other
Related
Expenses(2)   Impairments
and Write-
downs of
assets(3)   Other
Items(4)   Non-
GAAP
Adjusted
Results   Non-
GAAP
Adjusted
Margin(1)   Net sales $ 2,614       $ -   $ -   $ -   $ 2,614       Cost of sales   1,434         (2 )   -     -     1,436       Gross Profit   1,180     45.1 %   (2 )   -     -     1,178     45.1 % Selling, general and administrative   1,111     42.5 %   19     8     5     1,079     41.3 % Operating income   69     2.6 %   17     8     5     99     3.8 % Other income (expense)   (34 )       -     -     1     (33 )     Income tax expense (benefit)(5)   11         (5 )   (2 )   (1 )   19       Net Income $ 24       $ 12   $ 6   $ 5   $ 47                                     Diluted earnings per share $ 0.39                   $ 0.77       Diluted weighted-average common shares outstanding   60.9                     60.9         (1) These GAAP and Non-GAAP measures are calculated as a percentage of net sales. (2) Restructuring and other related expenses includes $13 million for reserves on independent loans and $4 million of other related expenses associated with location closures. (3) The Company recorded incremental accelerated depreciation and amortization for property and equipment and ROU assets of $5 million and impairment charges for property and equipment and ROU assets of $3 million, net of gains on sale. (4) Other items includes $5 million of nonrecurring services rendered by third-party vendors. (5) The income tax impact of Non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective Non-GAAP adjustments.   Q1 2025     GAAP Results   GAAP
Margin(1)   Restructuring
and Other
Related
Expenses   Impairments
and Write-downs of
assets   Other
Items   Non-
GAAP
Adjusted
Results   Non-
GAAP
Adjusted
Margin(1)   Net sales $ 2,583       $ -   $ -   $ -   $ 2,583       Cost of sales   1,474         -     -     -     1,474       Gross Profit   1,109     42.9 %   -     -     -     1,109     42.9 % Selling, general and administrative   1,240     48.0 %   66     45     12     1,117     43.2 % Operating income (loss)   (131 )   (5.1 )%   66     45     12     (8 )   (0.3 )% Other income (expense)   -         -     -     (4 )   (4 )     Income tax expense (benefit)   (155 )       (16 )   (11 )   (129 )   1       Net Income (loss) $ 24       $ 50   $ 34   $ (121 ) $ (13 )                                   Diluted earnings per share $ 0.40                   $ (0.22 )     Diluted weighted-average common shares outstanding(2)   60.2                     59.8         (1) These GAAP and Non-GAAP measures are calculated as a percentage of net sales. (2) Non-GAAP diluted weighted-average common shares outstanding excludes 0.4 million of anti-dilutive share-based awards. Details of Non-GAAP adjustment amounts included in the Non-GAAP reconciliation for the prior period are included in the press release for that period. Reconciliation of Free Cash Flow:       Sixteen Weeks Ended   (in millions)   April 25, 2026     April 19, 2025   Cash flows from continuing operations(1)   $ (19 )   $ (156 ) Purchases of property and equipment     (56 )     (42 ) Free cash flow   $ (75 )   $ (198 )   (1) The sixteen weeks ended April 25, 2026 and April 19, 2025, included approximately $6 million and $90 million, respectively, of cash charges related to restructuring and other related expenses under our 2024 Restructuring Plan. Reconciliation of Adjusted Net Debt to Adjusted EBITDAR(1)     Four Quarters Ended   (in millions, except adjusted debt to EBITDAR ratio) April 25, 2026   Total Debt (GAAP) $ 3,414   Add: Operating lease liabilities   2,211   Less: Cash & cash equivalents   (2,956 ) Adjusted Net Debt (Non-GAAP) $ 2,669         Net income (GAAP) $ 69   Depreciation and amortization   257   Interest expense   177   Other income, net   (94 ) Income tax benefit   6   Rent expense   533   Share-based compensation   37   Transformation and other charges(2)   144   Adjusted EBITDAR (Non-GAAP) $ 1,129         Debt to Net income (GAAP)   49.5   Adjusted Net Debt to Adjusted EBITDAR (Non-GAAP)   2.4     (1) Management believes its Adjusted Net Debt to Adjusted EBITDAR ratio (“net leverage ratio”) is a key financial metric for debt securities, as reviewed by rating agencies, and believes its debt levels are best analyzed using this measure. The Company’s goal is to re-establish an investment grade rating. The Company's credit rating could impact the Company's ability to obtain additional funding. A negative change in the Company's investment rating, could negatively impact future performance and limit growth opportunities. The net leverage ratio calculated by the Company is a Non-GAAP measure and should not be considered a substitute for debt to net income, as determined in accordance with GAAP. The Company adjusts the calculation to deduct available cash & cash equivalents and to add back the Company’s existing operating lease liabilities related to their right-of-use assets to provide a more meaningful comparison with the Company’s peers and to account for differences in debt structures and leasing arrangements. The Company also adjusts the calculation to remove rent expense and transformational and other non-cash charges. The Company’s calculation of its net leverage ratio may not be calculated in the same manner as other companies, and thus may not be comparable to similarly titled measures used by other companies. (2) The adjustments to the four quarters ended April 25, 2026 primarily include expenses associated with restructuring and related activities, including non-cash impairments, in addition to other items, including a charge for expected future credit losses related to vendor receivables due from a vendor that filed petitions for Chapter 11 bankruptcy protection on September 28, 2025, the Company's material weakness remediation efforts, professional fees and executive turnover. Store Information: During the sixteen weeks ended April 25, 2026, four stores were opened and one store was closed, resulting in a total of 4,308 stores as of April 25, 2026, compared with a total of 4,305 stores as of January 3, 2026. The below table summarizes the changes in the number of company-operated stores during the sixteen weeks ended April 25, 2026:   Sixteen Weeks Ended     AAP     CARQUEST     Total   January 3, 2026   4,066       239       4,305   New   4       -       4   Closed   -       (1 )     (1 ) April 25, 2026   4,070       238       4,308     View source version on businesswire.com: https://www.businesswire.com/news/home/20260521959153/en/ Investor Relations Contact:
Lavesh Hemnani
T: (919) 227-5466
E: invrelations@advance-auto.com Media Contact:
Nicole Ducouer
T: (984) 389-7207
E: AAPcommunications@advance-auto.com Original: Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance

Advance Auto Parts $AAP
AAP is the poster child for operational missteps. Chronic margin erosion, weak execution, and a competitive landscape that’s eating its lunch. Auto parts retail is supposed to be defensive — yet AAP keeps proving it can underperform even in a favorable category.

Advance Auto Parts to Feature Full Paint Scheme on Ryan Blaney-piloted No. 12 Team Penske Ford Mustang Dark Horse in Four NASCAR Cup Series RacesMarch 25, 2026 4:30 PM
Business Wire
Blaney also appearing at four store events as part of partnership entering its seventh season


Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installers and do-it-yourself customers, today announced that Team Penske’s No. 12 Ford Mustang piloted by Ryan Blaney will feature the full Advance paint scheme at four NASCAR Cup Series races this season.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260325180065/en/Advance Auto Parts, Inc. (NYSE: AAP), today announced that Team Penske’s No. 12 Ford Mustang piloted by Ryan Blaney will feature the full Advance paint scheme at four NASCAR Cup Series races this season.
Advance branding will be on full display both on the No. 12 car and Team Penske’s crew fire suits at The Cook Out 400 at Martinsville Speedway March 29, The Cracker Barrel 400 at Nashville Superspeedway May 31, The Coke Zero Sugar 400 at Daytona International Speedway Aug. 29, and The Yellawood 500 at Talladega Superspeedway Oct. 25. Blaney also will make multiple appearances and sign autographs at local Advance stores as part of race week activities.


“The Advance Auto Parts-Team Penske relationship, now in its seventh year, is an important part of Advance’s marketing and sponsorship strategy,” said Bruce Starnes, executive vice president and chief merchant at Advance Auto Parts. “Advance is in the midst of a comeback and it’s inspiring for our team members, partners and customers to see a champion like Ryan pilot the Advance No. 12 car.”


"It's hard to believe Advance and Team Penske are already in our seventh season together on the No. 12 Team Penske Ford," Blaney said. “Advance has such an incredible culture around racing and auto parts and truly values its customers just like we value our fans. I’m fortunate to be a part of it and looking forward to another year partnering.”


The last time Blaney drove the Advance No. 12 car he won the Coke Zero Sugar 400 at Daytona International Speedway in August 2025, in an epic sprint from 13th place in the final two laps. Advance’s four races with Blaney come as Team Penske is celebrating its 60th anniversary season this year.


About Advance Auto Parts:


Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of January 3, 2026, Advance operated 4,305 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 809 independently owned Carquest branded stores across these locations in addition to Mexico and 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.


About Team Penske


Team Penske is one of the most successful teams in the history of professional sports. Cars owned and prepared by Team Penske have produced more than 650 major race wins, over 700 pole positions and 48 championships across open-wheel, stock car and sports car racing competition. Over the course of its 60-year history, the team has also earned 20 Indianapolis 500 victories, three Daytona 500 Championships, a Formula 1 win, victories in the 24 Hours of Daytona and the 12 Hours of Sebring, along with a win in Australia's legendary Bathurst 1000 race. In 2025, Team Penske competed in the NTT INDYCAR SERIES and the NASCAR Cup Series. Through a Team Penske global partnership, Porsche Penske Motorsport also raced in the IMSA WeatherTech SportsCar Championship and the World Endurance Championship.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260325180065/en/
Rich Ellis

e: Rich.Ellis@advance-auto.com

c: 540-588-1258


Original: Advance Auto Parts to Feature Full Paint Scheme on Ryan Blaney-piloted No. 12 Team Penske Ford Mustang Dark Horse in Four NASCAR Cup Series Races

Advance Auto Parts Appoints Cynthia Jamison to Board of DirectorsMarch 10, 2026 4:15 PM
Business Wire
Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America announced today, that it has appointed Cynthia Jamison as an independent director to the Board of Directors.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260310861689/en/Cynthia Jamison has been appointed as an independent director to Advance Auto Parts' Board of Directors.
“Cynthia brings a wealth of Board and executive leadership experience within the retail and consumer products sectors, making her an invaluable addition to the Advance Board,” said Gene Lee, chair of the board. “On behalf of the entire board of directors, I am pleased to welcome her, and we look forward to her contributions.”


“The Advance team is committed to implementing initiatives grounded in retail fundamentals to enhance both operational and financial performance,” said Shane O’Kelly, president, and chief executive officer. “Cynthia's deep understanding of retail operations, coupled with her expertise in leadership development and governance, will play a key role in driving long-term value for our shareholders.”


“Advance operates in a healthy and growing industry, with the team consistently making strides in establishing a strong foundation for sustainable growth,” said Cynthia Jamison, independent director. “I look forward to working with the board to support the team’s efforts in driving further progress on the strategic plan.”


Ms. Jamison most recently served as Chief Financial Officer (CFO) of AquaSpy, Inc. from 2010 through 2013. Prior to AquaSpy she served as a Partner with Tatum, LLC, from 1999 - 2009 where she served as CFO or COO of several public and private entities across multiple industries. She also led the CFO Practice at Tatum for four years where she had responsibility for over 300 CFO Partners. Prior to joining Tatum, she held various C Suite and executive positions at Chart House Enterprises, Allied Domecq Retailing USA, Kraft General Foods, and Arthur Andersen.


Ms. Jamison has served on the Board of Directors of Darden Restaurants, Inc. since 2014 and was appointed as the Chair of the Board in 2023. She also serves on the Board of Directors, including as Chair of the Audit Committee of International Flavors & Fragrances, Inc., and is a trustee on the Board of Save The Children. She has previously served as Chair of the Boards of Directors of Tractor Supply Company and Big Lots, Inc. and as a member of the Board of Directors of Office Depot, Inc., B&G Foods, Cellu Tissue Holdings, Inc., and Horizon Organic Holdings Corp.


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 January 3, 2026, Advance operated 4,305 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 809 independently owned Carquest branded stores across these locations in addition to Mexico and 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260310861689/en/
Investor Relations Contact:

Lavesh Hemnani

T: (919) 227-5466

E: invrelations@advance-auto.com


Media Contact:

Nicole Ducouer

T: (984) 389-7207

E: AAPcommunications@advance-auto.com


Original: Advance Auto Parts Appoints Cynthia Jamison to Board of Directors

Advance Auto Parts to Present at the 2026 UBS Global Consumer and Retail ConferenceMarch 6, 2026 8:00 AM
Business Wire
Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installers and do-it-yourself customers, announced today that Shane O'Kelly, President and Chief Executive Officer, and Ryan Grimsland, Executive Vice President and Chief Financial Officer, will present at the 2026 UBS Global Consumer and Retail Conference at 11:00 a.m. ET on Wednesday, March 11, 2026.


The presentation will be webcast live on the company's Investor Relations website (ir.AdvanceAutoParts.com). A replay of the webcast will be available after the event.


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 January 3, 2026, Advance operated 4,305 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 809 independently owned Carquest branded stores across these locations in addition to Mexico and 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260306672875/en/
Investor Relations Contact:

Lavesh Hemnani

T: (919) 227-5466

E: invrelations@advance-auto.com


Media Contact:

Nicole Ducouer

T: (984) 389-7207

E: AAPCommunications@advance-auto.com


Original: Advance Auto Parts to Present at the 2026 UBS Global Consumer and Retail Conference

Advance Auto Parts Reports Fourth Quarter and Full Year 2025 Results; Releases Full Year 2026 Guidance Highlighting Continued Progress on Strategic PlanFebruary 13, 2026 6:30 AM
Business Wire

Q4'25 comparable sales growth of 1.1%; Positive sales performance in the last eight weeks



FY25 adjusted operating margin of 2.5%; Over 200-basis points of year-over-year expansion



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 fourth quarter and full year ended January 3, 2026.


"I am pleased with the progress achieved during 2025 and I want to thank our team members for their hard work,” said Shane O'Kelly, president and chief executive officer. "In 2025, we laid the foundation to build a better future for the Company. Our actions are delivering progress on operational goals and financial commitments to our shareholders. We returned to full year positive comparable sales growth following three years of negative results and expanded adjusted operating income margin by over 200-basis points, which were both in line with our full year 2025 guidance range."


"In 2026, we will continue to execute our strategic plan with a focus on the customer and the fundamentals of selling auto parts. This execution is being supported by a solid balance sheet with healthy liquidity to fuel our initiatives. Today, we are announcing 2026 guidance targeting an acceleration in full year comparable sales growth of 1.0% to 2.0% and adjusted operating income margin in the range of 3.8% to 4.5%, which builds on the foundation established thus far."


Fourth Quarter 2025 Results (1,2)


The Company's results for the fourth quarter ended January 3, 2026 included one additional week (the "additional week") as compared to the fourth quarter of the prior year ended December 28, 2024.


Fourth quarter 2025 net sales totaled $2.0 billion, compared with $2.0 billion in the fourth quarter of the prior year. The additional week in fourth quarter 2025 added approximately $132 million to net sales. Fourth quarter 2024 net sales included approximately $74 million related to sales at stores closed in Q1'25 as a result of our optimization program associated with our 2024 Restructuring Plan. Comparable store sales for the fourth quarter 2025 increased 1.1%. The calculation for comparable store sales excludes net sales related to closed stores under the 2024 Restructuring Plan and the additional week.


The Company's fourth quarter 2025 gross profit was $0.9 billion, or 44.0% of net sales compared with $0.3 billion, or 17.4% in the fourth quarter of the prior year. Adjusted gross profit was $0.9 billion, or 44.2% of net sales compared with $0.8 billion, or 39.0% in the fourth quarter of the prior year. The increase in gross profit as a percentage of net sales compared to the same period in the prior year was driven by cycling of atypical items related to our 2024 Restructuring Plan, operational savings associated with the footprint optimization activity completed in Q1'25 associated with our 2024 Restructuring Plan and improvements in product margins from strategic sourcing initiatives.


The Company's fourth quarter 2025 selling, general and administrative (SG&A) expenses were $0.8 billion, or 41.8% of net sales compared with $1.2 billion, or 58.5% of net sales in the fourth quarter of the prior year. Adjusted SG&A expenses were $0.8 billion, or 40.5% of net sales in the fourth quarter of 2025 compared with $0.9 billion, or 43.9% of net sales in the prior year quarter. The reduction in SG&A expenses as a percentage of net sales compared to the same period in the prior year was driven by cycling of atypical items related to our 2024 Restructuring Plan, and the operation of fewer stores compared to last year.


The Company's fourth quarter 2025 operating income was $44 million, or 2.2% of net sales, compared with operating loss of $820 million, or (41.1)% of net sales in the fourth quarter of the prior year. Adjusted fourth quarter 2025 operating income was $73 million or 3.7% of net sales, compared with a loss of $99 million or (5.0)% of net sales in the prior year quarter. The additional week in fourth quarter 2025 added approximately $9 million to adjusted operating income.


The Company's diluted earnings per share was $0.49, compared with a loss of $(10.16) in the fourth quarter of 2024. The Company's adjusted diluted earnings per share was $0.86 compared with a loss $(1.18) in the fourth quarter of 2024. The additional week in fourth quarter 2025 added approximately $0.08 to adjusted diluted earnings per share.


Full Year 2025 Results (1,2)


The Company's results for the full year ended January 3, 2026 included one additional week (the "additional week") as compared to the fiscal year ended December 28, 2024.


Full year 2025, net sales totaled $8.6 billion, compared with $9.1 billion in full year 2024. Full year 2025 net sales included $51 million related to the store optimization program associated with our 2024 Restructuring Plan, compared with approximately $74 million in full year 2024. The additional week added approximately $132 million to net sales in full year 2025. Comparable store sales for full year 2025 increased 0.8%. The calculation for comparable store sales excludes net sales related to the store optimization program and the additional week.


The Company's full year 2025 gross profit was $3.7 billion, or 43.4% of net sales compared with $3.4 billion or 37.5% of net sales in the prior year. Adjusted full year 2025 gross profit was $3.8 billion or 43.9% of net sales, compared with $3.8 billion or 42.2% of net sales in the prior year.


The Company's full year 2025 SG&A was $3.8 billion, or 43.9% of net sales, compared with $4.1 billion, or 45.3% of net sales in the prior year. Adjusted full year 2025 SG&A was $3.6 billion, or 41.4% of net sales, compared with $3.8 billion, or 41.8% of net sales, in the prior year.


The Company's full year 2025 operating loss was $43 million, or (0.5)% of net sales, compared with a loss of $713 million or (7.8)% of net sales in the prior year. Adjusted full year 2025 operating income was $216 million or 2.5% of net sales, compared with adjusted operating income of $35 million or 0.4% of net sales in the prior year. The store optimization program associated with our 2024 Restructuring Plan negatively impacted full year 2025 adjusted operating income by approximately $37 million. The additional week in full year 2025 added approximately $9 million to adjusted operating income.


The Company's full year 2025 diluted earnings per share was $1.13, compared with a loss of $(9.80) in the prior year. Adjusted full year 2025 diluted earnings per share was $2.26, compared with a loss of $(0.29) in the prior year. The additional week in full year 2025 added approximately $0.08 to adjusted diluted earnings per share.


Net cash used in operating activities was $46 million for the full year 2025 versus $141 million provided by operating activities for the prior year. Free cash flow for the full year 2025 was an outflow of $298 million, compared with an outflow of $40 million in the prior year. Free cash flow through the fourth quarter of 2025 includes approximately $140 million of cash charges related to restructuring and other related expenses.



____________________


(1)


All comparisons are based on continuing operations for the same time period in the prior year. 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").







(2)


Comparative financial information related to results from continuing operations has been recast to reflect the presentation of our former Worldpac, Inc. business (“Worldpac”) as discontinued operations. Refer to the Company’s Annual Report on Form 10-K for 2024, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2025







Capital Allocation


On February 10, 2026, the Company declared a regular cash dividend of $0.25 per share to be paid on April 24, 2026 to all common stockholders of record as of April 10, 2026.


Full Year 2026 Guidance(1)




 






 






As of February 13, 2026








($ in millions, except per share data)






 






Low






 






High








Net sales






 






$8,485






 






$8,575








Comparable store sales (52 weeks)(2)






 






1.00%






 






2.00%








Adjusted operating income margin






 






3.80%






 






4.50%








Adjusted diluted EPS(3)






 






$2.40






 






$3.10








Capital expenditures






 






Approx. $300








Free cash flow






 






Approx. $100








 






 






 






 






 








Store growth






 






 








Store Openings






 






40 - 45








Market hub openings






 






10 - 15









(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 $80 million.


Investor Conference Call


The Company will detail its results for the fourth quarter and full year 2025 via a webcast scheduled to begin at 8 a.m. Eastern Time on Friday, February 13, 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 installer and do-it-yourself customers. As of January 3, 2026, Advance operated 4,305 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 809 independently owned Carquest branded stores across these locations in addition to Mexico and 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.


Forward-Looking Statements


Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “target,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the Company’s strategic initiatives, future business and financial performance, revenue, earnings, cash flow, liquidity, restructuring and asset optimization plans, financial objectives, including with respect to the Company's reorganized debt capital structure, operational plans and objectives, capital expenditures, organizational changes, cost reductions, expectations for macroeconomic conditions, marketing strategies, inflation, impairments, consumer behavior and preferences, labor costs and availability, supply chain and merchandising strategies and effects, technology investments, effective tax rates, regulatory changes and impacts, anticipated impacts of tariffs and other trade barriers, compliance with debt covenants, statements about the status of, and capacity and utilization under, the Company’s supply chain financing arrangements and statements about the Company’s future credit ratings and outlook as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the Company’s views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the Company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, the Company’s ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, risks associated with the Company’s restructuring and asset optimization plans, risks relating to incurrence of indebtedness and increased leverage, risks relating to the Company's credit ratings or perceived creditworthiness, deterioration of general macroeconomic conditions, geopolitical factors, including increased tariffs and trade restrictions, the highly competitive nature of the industry, demand for the Company’s products and services, risks relating to the impairment of assets, including intangible assets such as goodwill, access to financing on favorable terms, complexities in the Company’s inventory and supply chain, implementation and operation of information and technology systems, and challenges with transforming and growing its business. Please refer to “Item 1A. Risk Factors” of the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by the Company’s subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements.




Advance Auto Parts, Inc. and Subsidiaries








Condensed Consolidated Balance Sheets








(in millions), (unaudited)(1)













 



Assets






 






January 3, 2026






 






 






December 28, 2024






 








Current assets:






 






 






 






 






 






 








Cash and cash equivalents






 






$






3,123






 






 






$






1,869






 








Receivables, net






 






 






380






 






 






 






544






 








Inventories, net






 






 






3,646






 






 






 






3,612






 








Other current assets






 






 






141






 






 






 






118






 








Total current assets






 






 






7,290






 






 






 






6,143






 








Property and equipment, net






 






 






1,269






 






 






 






1,334






 








Operating lease right-of-use assets






 






 






2,157






 






 






 






2,243






 








Goodwill






 






 






600






 






 






 






598






 








Other intangible assets, net






 






 






400






 






 






 






406






 








Other assets






 






 






110






 






 






 






74






 








Total assets






 






$






11,826






 






 






$






10,798






 








Liabilities and Stockholders' Equity






 






 






 






 






 






 








Current liabilities:






 






 






 






 






 






 








Accounts payable






 






$






2,977






 






 






$






3,408






 








Accrued expenses






 






 






756






 






 






 






784






 








Other current liabilities






 






 






443






 






 






 






473






 








Total current liabilities






 






 






4,176






 






 






 






4,665






 








Long-term debt






 






 






3,412






 






 






 






1,789






 








Operating lease liabilities






 






 






1,812






 






 






 






1,897






 








Deferred income taxes






 






 






142






 






 






 






193






 








Other long-term liabilities






 






 






86






 






 






 






84






 








Total liabilities






 






 






9,628






 






 






 






8,628






 








Total stockholders' equity






 






 






2,198






 






 






 






2,170






 








Total liabilities and stockholders' equity






 






$






11,826






 






 






$






10,798






 









(1)







This condensed consolidated balance sheet has been prepared on a basis consistent with the Company's previously prepared balance sheets filed with the Securities and Exchange Commission ("SEC"), but does not include the footnotes required by accounting principles generally accepted in the United States of America (“GAAP”).









Advance Auto Parts, Inc. and Subsidiaries








Condensed Consolidated Statements of Operations








(in millions, except per share data), (unaudited)(1)


















 



 






Thirteen Weeks

Ended






 






 






Twelve Weeks

Ended






 






 






Fifty-Three

Weeks Ended






 






 






Fifty-Two

Weeks Ended






 








 






January 3,

2026






 






 






December 28,

2024






 






 






January 3,

2026






 






 






December 28,

2024






 








Net sales






$






1,973






 






 






$






1,996






 






 






$






8,601






 






 






$






9,094






 








Cost of sales






 






1,104






 






 






 






1,649






 






 






 






4,868






 






 






 






5,685






 








Gross profit






 






869






 






 






 






347






 






 






 






3,733






 






 






 






3,409






 








Selling, general and administrative expenses, exclusive of restructuring expenses






 






802






 






 






 






879






 






 






 






3,572






 






 






 






3,813






 








Restructuring and related expenses






 






23






 






 






 






288






 






 






 






204






 






 






 






309






 








Selling, general and administrative expenses






 






825






 






 






 






1,167






 






 






 






3,776






 






 






 






4,122






 








Operating income (loss)






 






44






 






 






 






(820






)






 






 






(43






)






 






 






(713






)








Other, net:






 






 






 






 






-






 






 






 






 






 






 






-






 








Interest expense






 






(53






)






 






 






(19






)






 






 






(139






)






 






 






(81






)








Other income, net






 






30






 






 






 






14






 






 






 






91






 






 






 






26






 








Total other, net






 






(23






)






 






 






(5






)






 






 






(48






)






 






 






(55






)








Income (loss) before income tax expense






 






21






 






 






 






(825






)






 






 






(91






)






 






 






(768






)








Income tax benefit






 






(9






)






 






 






(215






)






 






 






(159






)






 






 






(181






)








Net income (loss) from continuing operations






 






30






 






 






 






(610






)






 






 






68






 






 






 






(587






)








Net (loss) income from discontinued operations






 






(24






)






 






 






195






 






 






 






(24






)






 






 






251






 








Net income (loss)






$






6






 






 






$






(415






)






 






$






44






 






 






 






(336






)








 






 






 






 






 






 






 






 






 






 






 






 








Basic earnings (loss) per common share from continuing operations






$






0.50






 






 






$






(10.20






)






 






$






1.13






 






 






$






(9.84






)








Basic (loss) earnings per common share from discontinued operations






 






(0.40






)






 






 






3.26






 






 






 






(0.40






)






 






 






4.21






 








Basic earnings (loss) per common share






 






0.10






 






 






$






(6.94






)






 






 






0.73






 






 






$






(5.63






)








Basic weighted-average common shares outstanding






 






60.0






 






 






 






59.7






 






 






 






59.9






 






 






 






59.6






 








 






 






 






 






 






 






 






 






 






 






 






 








Diluted earnings (loss) per common share from continuing operations






$






0.49






 






 






$






(10.16






)






 






$






1.13






 






 






$






(9.80






)








Diluted (loss) earnings per common share from discontinued operations






 






(0.39






)






 






 






3.24






 






 






 






(0.40






)






 






 






4.19






 








Diluted earnings (loss) per common share






$






0.10






 






 






$






(6.92






)






 






$






0.73






 






 






$






(5.61






)








Diluted weighted-average common shares outstanding






 






60.8






 






 






 






60.0






 






 






 






60.6






 






 






 






59.9






 









(1)







These condensed consolidated statements of operations have been prepared on a basis consistent with the Company's previously prepared statements of operations filed with the SEC, but do not include the footnotes required by GAAP.









Advance Auto Parts, Inc. and Subsidiaries








Condensed Consolidated Statements of Cash Flows








(in millions), (unaudited)(1)













 



 






 






Fifty-Three Weeks

Ended






 






 






Fifty-Two Weeks

Ended






 








 






 






January 3, 2026






 






 






December 28, 2024






 








Cash flows from operating activities:






 






 






 






 






 






 








Net income (loss)






 






$






44






 






 






$






(336






)








Net (loss) income from discontinued operations






 






 






(24






)






 






 






251






 








Net income (loss) from continuing operations






 






 






68






 






 






 






(587






)








Adjustments to reconcile net income from continuing operations to net cash (used in) provided by operating activities:






 






 






 






 






 






 








Depreciation and amortization






 






 






272






 






 






 






292






 








Share-based compensation






 






 






36






 






 






 






42






 








Loss on sale and impairment of long-lived assets






 






 






25






 






 






 






158






 








Credit loss expense, net






 






 






62






 






 






 






56






 








Provision for deferred income taxes






 






 






(43






)






 






 






(203






)








Other, net






 






 






16






 






 






 






4






 








Net change in:






 






 






 






 






 






 








Receivables, net






 






 






138






 






 






 






7






 








Inventories, net






 






 






(21






)






 






 






270






 








Operating lease right of use assets






 






 






67






 






 






 






73






 








Other assets






 






 






(22






)






 






 






74






 








Accounts payable






 






 






(469






)






 






 






(110






)








Accrued expenses






 






 






(60






)






 






 






127






 








Operating lease liabilities






 






 






(114






)






 






 






(60






)








Other liabilities






 






 






(1






)






 






 






(2






)








Net cash (used in) provided by operating activities of continuing operations






 






 






(46






)






 






 






141






 








Net cash used in operating activities of discontinued operations






 






 






-






 






 






 






(56






)








Net cash (used in) provided by operating activities






 






 






(46






)






 






 






85






 








Cash flows from investing activities:






 






 






 






 






 






 








Purchases of property and equipment






 






 






(252






)






 






 






(181






)








Proceeds from sales of property and equipment






 






 






21






 






 






 






14






 








Other, net






 






 






(8






)






 






 






-






 








Net cash used in investing activities of continuing operations






 






 






(239






)






 






 






(167






)








Net cash provided by investing activities of discontinued operations






 






 






-






 






 






 






1,522






 








Net cash (used in) provided by investing activities






 






 






(239






)






 






 






1,355






 








Cash flows from financing activities:






 






 






 






 






 






 








Proceeds from issuance of long-term debt






 






 






1,950






 






 






 






-






 








Repayment of long-term debt






 






 






(300






)






 






 






-






 








Debt issuance costs






 






 






(47






)






 






 






-






 








Dividends paid






 






 






(60






)






 






 






(60






)








Other, net






 






 






(5






)






 






 






(15






)








Net cash provided by (used in) financing activities






 






 






1,538






 






 






 






(75






)








 






 






 






 






 






 






 








Effect of exchange rate changes on cash






 






 






1






 






 






 






1






 








 






 






 






 






 






 






 








Net increase in cash and cash equivalents






 






 






1,254






 






 






 






1,366






 








Cash and cash equivalents, beginning of period






 






 






1,869






 






 






 






503






 








Cash and cash equivalents, end of period






 






$






3,123






 






 






$






1,869






 








 






 






 






 






 






 






 








Supplemental cash flow information:






 






 






 






 






 






 








Interest paid






 






$






76






 






 






$






76






 








 






 






 






 






 






 






 








Non-cash transactions of continuing operations:






 






 






 






 






 






 








Accrued purchases of property and equipment






 






$






14






 






 






$






15






 








Transfers of property and equipment from assets related to discontinued operations to continuing operations






 






 






-






 






 






 






7






 








Accrued dividends






 






 






16






 






 






 






16






 









(1)







This condensed consolidated statement of cash flows has been prepared on a basis consistent with the Company's previously prepared statements of operations filed with the SEC, but does not include the footnotes required by GAAP.







Reconciliation of Non-GAAP Financial Measures


The Company uses certain non-GAAP financial measures described below to supplement the Company's unaudited condensed consolidated financial statements prepared and presented in accordance with GAAP and to understand and evaluate the Company's core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented as the Company believes that such non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. The Company is presenting these non-GAAP metrics to provide investors insight to the information used by our management to evaluate our business and financial performance. The Company believes that these measures provide investors increased comparability of our core financial performance over multiple periods with other companies in our industry. The Company's Non-GAAP financial measures reflect results from continuing operations, including Adjusted Net (loss) Income, Adjusted Diluted (loss) Earnings Per Share (“Adjusted Diluted EPS”), Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Selling, General and Administrative expense (“Adjusted SG&A”), Adjusted SG&A Margin, Adjusted Operating (loss) Income, Adjusted Operating (loss) Income Margin, Free Cash Flow and Adjusted Net Debt to Adjusted EBITDAR ("Net Leverage Ratio"), and should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purpose of analyzing operating performance, financial position or cash flows.


The Company has presented these non-GAAP financial measures as the Company believes that the presentation of the financial results that exclude (1) transformation expenses under the Company’s turnaround plans, inclusive of the Worldpac divestiture (2) other significant expenses and (3) nonrecurring tax expense are useful and indicative of the Company's base operations because the expenses vary from period to period in terms of size, nature and significance. The income tax impact of these non-GAAP adjustments is adjusted for using the estimated tax rate in effect for the respective non-GAAP adjustments. These measures assist in comparing the Company’s current operating results with past periods and with the operational performance of other companies in the industry. The disclosure of these measures allows investors to evaluate the Company’s performance using the same measures management uses in developing internal budgets and forecasts and in evaluating management’s compensation. Included below is a description of the expenses the Company has determined are not normal, recurring cash operating expenses necessary to operate the Company’s business and the rationale for why providing these measures is useful to investors as a supplement to the GAAP measures.


Transformation Expenses


Expenses incurred in connection with the Company's turnaround plan and specific transformative activities related to asset optimization that the Company does not view to be normal cash operating expenses. These expenses primarily include:



Restructuring and other related expenses: Expenses relating to strategic initiatives, including severance expense, retention bonuses offered to store-level employees to help facilitate the closing of stores, incremental reserves related to the collectibility of receivables resulting from contract terminations with certain independents associated with the 2024 Restructuring Plan and third-party professionals assisting in the development and execution of the strategic initiatives.




Inventory write-down: Expenses relating to the incremental write-down of inventory to net realizable value due to liquidation sales and streamlining inventory assortment due to store and distribution center closures associated with the 2024 Restructuring Plan.




Impairment and write-down of long-lived assets: Expenses relating to the impairment of operating lease right-of-use ("ROU") assets and property and equipment, incremental depreciation as a result of accelerating long-lived assets over a shorter useful life, ROU asset amortization after store closure, and incremental lease abandonment expenses as a result of accelerating ROU asset amortization for leases the Company expects to exit before the end of the contractual term, net of gains on lease terminations, in connection with the 2024 Restructuring Plan and Other Restructuring Plan.




Distribution network optimization: Expenses primarily relating to the conversion of the stores and distribution centers to market hubs, including, realized losses on liquidated inventory, temporary labor, nonrecurring professional service fees and team member severance.



Other Expenses


Expenses incurred by the Company that are not viewed as normal cash operating expenses and vary from period to period in terms of size, nature, and significance. These expenses primarily include:



Other professional service fees: Expenses relating to nonrecurring services rendered by third-party vendors engaged to perform a strategic business review, including the Company’s transformation initiatives.




Worldpac post transaction-related expenses: Expenses primarily relating to non-recurring separation activities provided by third-party professionals subsequent to the sale of Worldpac.




Executive turnover: Expenses associated with executive level reorganization, including expenses for executive severance, the hiring search for leadership positions and certain compensation benefits.




Material weakness remediation: Incremental expenses associated with the remediation of the Company’s previously-disclosed material weaknesses in internal control over financial reporting.




Cybersecurity incident: Expenses related to the response and remediation of a cybersecurity incident.



Other: Includes a non-cash charge related to expected future credit losses on vendor receivables due from a vendor that filed voluntary petitions for Chapter 11 bankruptcy protection.



Other tax adjustments: Certain tax items that are unrelated to the fiscal year in which they are recorded are excluded in order to provide a clearer understanding of the Company’s ongoing Non-GAAP tax rate and after-tax earnings.



Reconciliation of Diluted Earnings (loss) Per Share (GAAP) and Adjusted Diluted Earnings (loss) Per Share (Non-GAAP):




 






 






Thirteen Weeks

Ended






 






 






Twelve Weeks

Ended






 






 






Fifty-Three

Weeks Ended






 






 






Fifty-Two

Weeks Ended






 








 






Classification






January 3, 2026






 






 






December 28,

2024






 






 






January 3, 2026






 






 






December 28,

2024






 








Net income (loss) from continuing operations (GAAP)






 






$






30






 






 






$






(610






)






 






$






68






 






 






$






(587






)








Cost of sales adjustments:






 






 






 






 






 






 






 






 






 






 






 






 








Transformation expenses:






 






 






 






 






 






 






 






 






 






 






 






 








Inventory write-down






Restructuring






 






-






 






 






 






431






 






 






 






-






 






 






 






431






 








Distribution network optimization






Restructuring






 






4






 






 






 






-






 






 






 






12






 






 






 






-






 








Expected future credit loss related to other receivables(1)






Non-restructuring






 






-






 






 






 






-






 






 






 






28






 






 






 






-






 








Selling, general and administrative adjustments:






 






 






 






 






 






 






 






 






 






 






 






 








Transformation expenses:






 






 






 






 






 






 






 






 






 






 






 






 








Restructuring and other related expenses (2)






Restructuring






 






10






 






 






 






61






 






 






 






88






 






 






 






61






 








Impairment and write-down of long-lived assets (3)






Restructuring






 






6






 






 






 






204






 






 






 






83






 






 






 






204






 








Distribution network optimization






Restructuring






 






5






 






 






 






6






 






 






 






20






 






 






 






20






 








Other expenses:






 






 






 






 






 






 






 






 






 






 






 






 








Other professional service fees






Non-restructuring(6)






 






2






 






 






 






10






 






 






 






14






 






 






 






15






 








Worldpac post transaction-related expenses






Restructuring






 






1






 






 






 






7






 






 






 






8






 






 






 






7






 








Executive turnover






Restructuring






 






1






 






 






 






-






 






 






 






5






 






 






 






2






 








Material weakness remediation






Non-restructuring






 






-






 






 






 






2






 






 






 






1






 






 






 






5






 








Cybersecurity incident






Non-restructuring






 






-






 






 






 






-






 






 






 






-






 






 






 






3






 








Other income adjustments:






 






 






 






 






 






 






 






 






 






 






 






 








TSA services






 






 






-






 






 






 






(2






)






 






 






(9






)






 






 






(3






)








Loss on extinguishment of debt






 






 






-






 






 






 






-






 






 






 






9






 






 






 






-






 








Provision for income taxes on adjustments (4)






 






 






(7






)






 






 






(180






)






 






 






(64






)






 






 






(185






)








Other tax (benefit) expense adjustments (5)






 






 






-






 






 






 






-






 






 






 






(126






)






 






 






10






 








Adjusted net income (loss) (Non-GAAP)






 






$






52






 






 






$






(71






)






 






$






137






 






 






$






(17






)








 






 






 






 






 






 






 






 






 






 






 






 






 








Diluted earnings (loss) per share from continuing operations (GAAP)






 






$






0.49






 






 






$






(10.16






)






 






$






1.13






 






 






$






(9.80






)








Adjustments, net of tax






 






 






0.37






 






 






 






8.98






 






 






 






1.13






 






 






 






9.51






 








Adjusted diluted earnings (loss) per share (Non-GAAP)






 






$






0.86






 






 






$






(1.18






)






 






$






2.26






 






 






$






(0.29






)























 



(1) Reflects a charge for expected future credit losses related to vendor receivables due from a vendor that filed petitions for Chapter 11 bankruptcy protection on September 28, 2025.








(2) Restructuring and other related expenses for the thirteen weeks ended January 3, 2026 includes $1 million of nonrecurring services rendered by third party vendors assisting with the 2024 Restructuring Plan, $2 million of severance and other related costs and $7 million of other-related expenses associated with location closures, including the transfer of assets. Restructuring and other related expenses for the fifty-three weeks ended January 3, 2026 includes $38 million of nonrecurring services rendered by third party vendors assisting with the 2024 Restructuring Plan, $18 million of severance and other related costs, $7 million for reserves on independent loans and $25 million of other related expenses associated with location closures, including the transfer of assets. Restructuring and other related expenses for the fifty-two weeks ended December 28, 2024 includes $25 million of incremental receivable reserves resulting from contract terminations with certain independents as part of the 2024 Restructuring Plan, $15 million of severance and other labor related costs as part of the 2024 Restructuring Plan, and $21 million of nonrecurring services rendered by third party vendors assisting with the 2024 Restructuring Plan.








(3) The Company recorded incremental accelerated depreciation and amortization for property and equipment and ROU assets of $4 million and impairment charges for ROU assets and property and equipment of $2 million, net of gains on sale, for the thirteen weeks ended January 3, 2026. The Company recorded incremental accelerated depreciation and amortization for property and equipment and ROU assets of $60 million and impairment charges for ROU assets and property and equipment of $23 million, net of gains on sale, for the fifty-three weeks ended January 3, 2026. The Company recorded incremental accelerated depreciation and amortization for property and equipment and ROU assets of $171 million and impairment charges for ROU assets and property and equipment of $33 million, net of gains on sale, for the fifty-two weeks ended December 28, 2024








(4) The income tax impact of Non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective Non-GAAP adjustments.








(5) Income tax (benefit) expenses included a discrete non-recurring tax benefit associated with capital loss deductions effectuated in the first quarter of fiscal 2025. The benefit has been excluded from Non-GAAP results in order to provide a clearer understanding of ongoing Non-GAAP tax rate and after-tax earnings.








(6) Other professional service fees in fiscal 2024 were classified as restructuring and related expenses based on the underlying activity to which they are related.







Reconciliation of Adjusted Gross Profit




 






 






Thirteen

Weeks Ended






 






 






Twelve Weeks

Ended






 






 






Fifty-Three

Weeks Ended






 






 






Fifty-Two

Weeks Ended






 








(in millions)






 






January 3,

2026






 






 






December 28,

2024






 






 






January 3,

2026






 






 






December 28,

2024






 








Gross Profit (GAAP)






 






$






869






 






 






$






347






 






 






$






3,733






 






 






$






3,409






 








Gross Profit adjustments






 






 






4






 






 






 






431






 






 






 






40






 






 






 






431






 








Adjusted Gross Profit (Non-GAAP)






 






$






873






 






 






$






778






 






 






$






3,773






 






 






$






3,840






 








Gross Profit Margin (GAAP)(1)






 






 






44.0






%






 






 






17.4






%






 






 






43.4






%






 






 






37.5






%








Adjusted Gross Profit Margin (Non-GAAP)(1)






 






 






44.2






%






 






 






39.0






%






 






 






43.9






%






 






 






42.2






%























 



(1) These GAAP and Non-GAAP measures are calculated as a percentage of Net sales.







Reconciliation of Adjusted Selling, General and Administrative Expenses




 






 






Thirteen

Weeks Ended






 






 






Twelve Weeks

Ended






 






 






Fifty-Three

Weeks Ended






 






 






Fifty-Two

Weeks Ended






 








(in millions)






 






January 3,

2026






 






 






December 28,

2024






 






 






January 3,

2026






 






 






December 28,

2024






 








SG&A expenses (GAAP)






 






$






825






 






 






$






1,167






 






 






$






3,776






 






 






$






4,122






 








SG&A adjustments






 






 






(25






)






 






 






(290






)






 






 






(219






)






 






 






(317






)








Adjusted SG&A (Non-GAAP)






 






$






800






 






 






$






877






 






 






$






3,557






 






 






$






3,805






 








SG&A Margin (GAAP)(1)






 






 






41.8






%






 






 






58.5






%






 






 






43.9






%






 






 






45.3






%








Adjusted SG&A Margin (Non-GAAP)(1)






 






 






40.5






%






 






 






43.9






%






 






 






41.4






%






 






 






41.8






%























 



(1) These GAAP and Non-GAAP measures are calculated as a percentage of Net sales.







Reconciliation of Adjusted Operating Income:




 






 






Thirteen

Weeks Ended






 






 






Twelve

Weeks Ended






 






 






Fifty-Three

Weeks Ended






 






 






Fifty-Two

Weeks Ended






 








(in millions)






 






January 3,

2026






 






 






December 28,

2024






 






 






January 3,

2026






 






 






December 28,

2024






 








Operating Income (Loss) (GAAP)






 






$






44






 






 






$






(820






)






 






$






(43






)






 






$






(713






)








Gross Profit adjustments






 






 






4






 






 






 






431






 






 






 






40






 






 






 






431






 








SG&A adjustments






 






 






25






 






 






 






290






 






 






 






219






 






 






 






317






 








Adjusted Operating Income (Loss) (Non-GAAP)






 






$






73






 






 






$






(99






)






 






$






216






 






 






$






35






 








Operating Income (Loss) Margin (GAAP)(1)






 






 






2.2






%






 






 






(41.1






)%






 






 






(0.5






)%






 






 






(7.8






)%








Adjusted Operating Income (Loss) Margin (Non-GAAP)(1)






 






 






3.7






%






 






 






(5.0






)%






 






 






2.5






%






 






 






0.4






%























 



(1) These GAAP and Non-GAAP measures are calculated as a percentage of Net sales.







Reconciliation of Free Cash Flow:




 






 






Fifty-Three Weeks

Ended






 






 






Fifty-Two Weeks

Ended






 








(in millions)






 






January 3, 2026






 






 






December 28, 2024






 








Cash flows from continuing operations






 






$






(46






)






 






$






141






 








Purchases of property and equipment






 






 






(252






)






 






 






(181






)








Free cash flow






 






$






(298






)






 






$






(40






)















 



(1) Includes approximately $140 million of cash charges related to restructuring and other related expenses.







Reconciliation of Adjusted Net Debt to Adjusted EBITDAR(1)




 






Four Quarters Ended






 








(in millions, except adjusted debt to EBITDAR ratio)






January 3, 2026






 








Total Debt (GAAP)






$






3,412






 








Add: Operating lease liabilities






 






2,247






 








Less: Cash & cash equivalents






 






(3,123






)








Adjusted Net Debt (Non-GAAP)






$






2,536






 








 






 






 








Net income from continuing operations (GAAP)






$






68






 








Depreciation and amortization






 






272






 








Interest expense






 






139






 








Other income, net






 






(91






)








Income tax benefit






 






(159






)








Rent expense






 






557






 








Share-based compensation






 






36






 








Transformation and other charges(2)






 






227






 








Adjusted EBITDAR (Non-GAAP)






$






1,049






 








 






 






 








Debt to Net income from continuing operations (GAAP)






 






50.2






 








Adjusted Net Debt to Adjusted EBITDAR (Non-GAAP)






 






2.4






 










 



(1) Management believes its Adjusted Net Debt to Adjusted EBITDAR ratio (“net leverage ratio”) is a key financial metric for debt securities, as reviewed by rating agencies, and believes its debt levels are best analyzed using this measure. The Company’s goal is to re-establish an investment grade rating. The Company's credit rating could impact the Company's ability to obtain additional funding. A negative change in the Company's investment rating, could negatively impact future performance and limit growth opportunities. The net leverage ratio calculated by the Company is a Non-GAAP measure and should not be considered a substitute for debt to net income, as determined in accordance with GAAP. The Company adjusts the calculation to remove rent expense, transformational and other non-cash charges, deduct available cash & cash equivalents and to add back the Company’s existing operating lease liabilities related to their right-of-use assets to provide a more meaningful comparison with the Company’s peers and to account for differences in debt structures and leasing arrangements. The Company’s calculation of its net leverage ratio may not be calculated in the same manner as other companies, and thus may not be comparable to similarly titled measures used by other companies.








(2) The adjustments to the four quarters ended January 3, 2026 include expenses associated with our transformation and restructuring and related activities, in addition to other items, including a charge for expected future credit losses related to vendor receivables due from a vendor that filed petitions for Chapter 11 bankruptcy protection on September 28, 2025, the Company's material weakness remediation efforts, professional fees and executive turnover.







Store Information:


During the fifty-three weeks ended January 3, 2026, 39 stores were opened and 522 were closed, resulting in a total of 4,305 stores as of January 3, 2026, compared with a total of 4,788 stores as of December 28, 2024.


The below table summarizes the changes in the number of company-operated stores during the thirteen and fifty-three weeks ended January 3, 2026:




 






Thirteen Weeks Ended






 








 






AAP






 






 






CARQUEST






 






 






Total






 








October 4, 2025






 






4,061






 






 






 






236






 






 






 






4,297






 








New






 






9






 






 






 






4






 






 






 






13






 








Closed






 






(4






)






 






 






(1






)






 






 






(5






)








Relocation






 






—






 






 






 






—






 






 






 






—






 








Converted






 






—






 






 






 






—






 






 






 






—






 








January 3, 2026






 






4,066






 






 






 






239






 






 






 






4,305






 









 






Fifty-Three Weeks Ended






 








 






AAP






 






 






CARQUEST






 






 






Total






 








December 28, 2024






 






4,507






 






 






 






281






 






 






 






4,788






 








New






 






31






 






 






 






8






 






 






 






39






 








Closed






 






(474






)






 






 






(48






)






 






 






(522






)








Relocation






 






1






 






 






 






(1






)






 






 






—






 








Converted






 






1






 






 






 






(1






)






 






 






—






 








January 3, 2026






 






4,066






 






 






 






239






 






 






 






4,305






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260213978718/en/
Investor Relations Contact:

Lavesh Hemnani

T: (919) 227-5466

E: invrelations@advance-auto.com


Media Contact:

Nicole Ducouer

T: (984) 389-7207

E: AAPcommunications@advance-auto.com


Original: Advance Auto Parts Reports Fourth Quarter and Full Year 2025 Results; Releases Full Year 2026 Guidance Highlighting Continued Progress on Strategic Plan