- The CEO said the company returned to a full-year positive comparable sales growth following three years of negative results.
- Gross profit in Q4 reached approximately $0.9 billion, representing 44% of revenue, compared with 17.4% last year.
- For 2026, the company projects revenue between $8.49 billion and $8.58 billion, with comparable sales growth of 1% to 2%.
Advance Auto Parts Inc. (AAP) reported fourth-quarter (Q4) and full-year results for the period ended Jan. 3, 2026, highlighting a return to annual comparable sales growth and improved profitability after several challenging years.
The automotive aftermarket retailer, which serves both professional installers and do-it-yourself customers across North America, said operational changes made in 2025 began to gain traction.
Leadership Points To Turnaround Progress
In Q4, the company reported sales of $2 billion and adjusted earnings per share (EPS) of $0.86. The period included an extra week that contributed about $132 million in revenue. Both revenue and EPS surpassed the analysts’ consensus estimate of $1.95 billion and $0.41, respectively, according to Fiscal AI data.
“We returned to full-year positive comparable sales growth following three years of negative results and expanded adjusted operating income margin by over 200 basis points, which were both in line with our full-year 2025 guidance range."
-Shane O'Kelly, President and CEO, Advance Auto Parts
Comparable store sales rose 1.1% in Q4 when excluding the additional week, and stores closed under the company’s 2024 restructuring initiative. Following the earnings, Advance Auto Parts stock traded over 9% higher in Friday’s premarket.
On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘neutral’ territory the previous day amid ‘high’ message volume levels.
Margins And Profitability Improve
Gross profit reached approximately $0.9 billion, representing 44.0% of revenue, compared with 17.4% last year, which was affected by restructuring-related charges. Adjusted gross margin improved to 44.2%, a 520 basis point YoY increase.
The company posted an operating income of $44 million, compared to an $820 million loss last year. On February 10, Advance Auto Parts declared a quarterly dividend of $0.25 per share, payable April 24, to shareholders of record as of April 10.
For 2026, the company projects revenue between $8.49 billion and $8.58 billion, comparable sales growth of 1% to 2%, and adjusted EPS of $2.40 to $3.10.
AAP stock has gained over 19% in the last 12 months.
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