Advance Auto Parts Earnings Show Strong Quarter

Advance Auto Parts (AAP) said in its May 21, 2026, earnings release that first-quarter results showed higher comparable-store sales and a return to operating profit, and the company reaffirmed full-year guidance.

Quarterly Results and Margins

The company reported net sales of $2.6 billion for the quarter ended April 25, 2026. Comparable-store sales rose 3.5%, marking the strongest quarterly growth in five years. Gross profit increased to $1.2 billion, or 45.1% of net sales, up from $1.1 billion, or 42.9%, a year earlier.

Operating income turned positive at $69 million, reversing a $131 million loss in the prior year. On an adjusted basis, operating income was $99 million, or 3.8% of net sales, compared with an adjusted operating loss of $8 million a year earlier. Diluted earnings per share were $0.39, while adjusted diluted EPS rose to $0.77, compared with a loss of $0.22 per share in the first quarter of 2025.

The company declared a quarterly dividend of $0.25 per share.

Guidance and Capital Allocation

Advance Auto Parts reaffirmed full-year 2026 guidance, projecting net sales between $8.5 billion and $8.6 billion and comparable-store sales growth of 1.0% to 2.0%. The company expects an adjusted operating-income margin of 3.8% to 4.5% and adjusted diluted EPS of $2.40 to $3.10. Capital expenditures are forecast at roughly $300 million, with free cash flow near $100 million.

The combination of rising comparable-store sales, improved gross margins, and a swing to operating profit, alongside reaffirmed guidance and the dividend, signals that the company’s recovery is translating into profit leverage and supports its near-term capital-allocation strategy.

“Comparable store sales increased 3.5%,” the company said in its release.