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AAP

ADVANCE AUTO PARTS INC Q4 2025 – SALES UP 1.1%, GROSS PROFIT DOUBLES

Advance Auto Parts, Inc. (NYSE: AAP) has reported its financial results for the fourth quarter and full year ended January 3, 2026. The company's fourth quarter 2025 net sales totaled $2.0 billion, compared with $2.0 billion in the fourth quarter of the prior year, with comparable store sales for the fourth quarter 2025 increasing 1.1%. 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. Additionally, the company's fourth quarter 2025 operating income was $44 million, or 2.2% of net sales, compared with an operating loss of $820 million, or (41.1)% of net sales in the fourth quarter of the prior year.

For the full year 2025, net sales totaled $8.6 billion compared with $9.1 billion in full year 2024, with comparable store sales for the full year 2025 increasing 0.8%. 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. Furthermore, 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.

Looking ahead, the company announced its 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%. This builds on the foundation established in the previous year.

In terms of capital allocation, 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.

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.

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. Today the company's shares have moved 1.12% to a price of $43.20. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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