Advance Auto Parts, Inc. has reported its second quarter 2025 financial results, showing a return to profitability. The company's net sales for the second quarter totaled $2.0 billion, a decrease from the $2.2 billion reported in the second quarter of the previous year. However, comparable store sales for the second quarter of 2025 increased by 0.1%.
The gross profit for the second quarter of 2025 was $0.9 billion, representing 43.5% of net sales, a slight decrease from the 43.6% reported in the second quarter of the prior year. Adjusted gross profit was also $0.9 billion, but the adjusted gross profit margin increased to 43.8% of net sales.
Selling, general and administrative (SG&A) expenses for the second quarter of 2025 were $0.9 billion, accounting for 42.4% of net sales, up from $0.9 billion and 41.1% in the second quarter of the prior year. However, adjusted SG&A expenses were reduced to $0.8 billion, representing 40.7% of net sales, compared with $0.9 billion, or 40.8% in the second quarter of 2024.
The company's operating income for the second quarter of 2025 was $22 million, or 1.1% of net sales, down from $54 million, or 2.5% in the second quarter of the previous year. Adjusted operating income was $61 million, or 3.0% of net sales, compared with $62 million, or 2.8% in the second quarter of 2024.
The effective tax rate for the second quarter of 2025 was 28.6%, slightly lower than the 29.5% reported in the same period of the previous year. Diluted earnings per share for the quarter was $0.25, down from $0.51 in the second quarter of 2024. However, the adjusted diluted earnings per share increased to $0.69, compared with $0.62 in the second quarter of 2024.
In terms of cash flow, the company reported a significant change, with net cash used in operating activities amounting to $106 million in the second quarter of 2025, compared to $39 million of cash provided by operating activities in the same period of the prior year. Free cash flow was an outflow of $201 million through the second quarter of 2025, compared with an outflow of $48 million in the same period of the prior year.
The company also provided full-year 2025 guidance, including adjusted diluted EPS, net sales, comparable store sales, adjusted operating income margin, capital expenditures, and free cash flow. The guidance assumes current tariffs remain in place for the remainder of 2025.
Following these announcements, the company's shares moved 4.57%, and are now trading at a price of $61.81. If you want to know more, read the company's complete 8-K report here.
