Advance Auto Parts, Inc. (NYSE: AAP) has reported its financial results for the first quarter ending April 19, 2025, with net sales totaling $2.6 billion, a decrease from $2.8 billion in the same period of the prior year. Comparable store sales for the first quarter of 2025 decreased by 0.6%, excluding store closing sales at more than 500 corporate locations as part of a store optimization program.
The company's first quarter 2025 gross profit was $1.1 billion, representing 42.9% of net sales, down from $1.2 billion, or 43.4% in the first quarter of the prior year. The company's first quarter 2025 operating loss was $131 million, or 5.1% of net sales, compared with operating income of $53 million, or 1.9% in the first quarter of 2024.
Furthermore, the company's first quarter 2025 effective tax rate benefit was 118.3%, compared with an effective tax rate expense of 41.4% in the first quarter of 2024. The company's diluted earnings per share for the quarter was $0.40, an increase from $0.29 in the first quarter of 2024.
Net cash used in operating activities was $156 million through the first quarter of 2025, compared to $3 million of cash used in operating activities in the same period of the prior year. Free cash flow through the first quarter of 2025 was an outflow of $198 million, compared with an outflow of $49 million in the same period of the prior year.
The company declared a regular cash dividend of $0.25 per share to be paid on July 25, 2025, to all common stockholders of record as of July 11, 2025.
Looking ahead, the company has reaffirmed its full year 2025 guidance, with net sales from continuing operations expected to range between $8.4 billion to $8.6 billion and comparable store sales expected to range from a 0.5% decrease to a 1.5% increase. The adjusted operating income margin from continuing operations is expected to be between 2.00% to 3.00%, and the adjusted diluted earnings per share from continuing operations is expected to range from a loss of $0.22 to earnings of $0.33 in the first quarter of 2024.
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider with 4,285 stores primarily within the United States, along with additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands. As a result of these announcements, the company's shares have moved 56.6% on the market, and are now trading at a price of $49.0301. For the full picture, make sure to review ADVANCE AUTO PARTS INC's 8-K report.
