Advance Auto Parts Q1 Net Sales Decline 0.3%

Advance Auto Parts, Inc. (NYSE: AAP) reported its financial results for the first quarter ended April 20, 2024. The company's net sales for the first quarter totaled $3.4 billion, representing a 0.3% decrease compared to the same period of the prior year. Comparable store sales also decreased by 0.2%. Gross profit decreased by 2.2% to $1.4 billion, with a gross profit margin of 42.0%, reflecting an 82 basis points decrease compared to the first quarter of the prior year.

The company's SG&A expenses were reported at $1.3 billion, representing an improvement to 39.4% of net sales compared to 39.9% in the first quarter of 2023. Operating income was $86.0 million, accounting for 2.5% of net sales, compared to 2.9% in the first quarter of 2023.

The effective tax rate for the first quarter of 2024 was 33.2%, compared to 28.5% in the first quarter of 2023. The company's diluted EPS was $0.67, down from $0.81 in the first quarter of 2023. Additionally, net cash provided by operating activities was $2.7 million for the first quarter of 2024, compared to $382.5 million of cash used in operating activities for the same period of the prior year. Free cash flow for the first quarter of 2024 was an outflow of $46.3 million, an improvement from an outflow of $472.5 million in the same period of the prior year.

Looking ahead, the company declared a regular cash dividend of $0.25 per share to be paid on July 26, 2024, to all common stockholders of record as of July 12, 2024. In terms of guidance, for the full year 2024, Advance Auto Parts anticipates net sales in the range of $11.3 billion to $11.5 billion, with comparable store sales expected to be between 0.0% and 1.0%. The company also provided diluted EPS guidance in the range of $3.75 to $4.25.

As of April 20, 2024, Advance Auto Parts operated 4,777 stores and 320 Worldpac branches primarily within the United States, with additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands. The company also served 1,152 independently owned Carquest branded stores across these locations, in addition to Mexico and various Caribbean islands.

For further details and a comprehensive review of the financial results, the company is scheduled to detail its first-quarter results via a webcast on Wednesday, May 29, 2024, at 8 a.m. Eastern Time. As a result of these announcements, the company's shares have moved -10.0% on the market, and are now trading at a price of $63.16. For the full picture, make sure to review Advance Auto Parts's 8-K report.

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