Advance Auto Parts Q1 Sales Increase 1.3%

[Counterman]

Advance Auto Parts reported first-quarter net sales of $3.4 billion, a 1.3% year-over-year increase.

Comparable-store sales increased by 0.6%. However, comparable sales increased by 25.3% on a two-year stack, which blends comparable-sales from 2022 and 2021.

“In the first quarter of 2022, we delivered our eighth consecutive quarter of comparable-store sales, adjusted operating income and adjusted earnings per share growth,” said Tom Greco, president and chief executive officer. “We started 2022 with strong mid-single-digit comp growth through the first 10 weeks of our 16-week quarter. During the final six weeks, we experienced comp declines driven by our DIY omnichannel business. This was primarily a result of headwinds from the expected lap of the DIY sales boost from the 2021 stimulus as well as a slower start to the spring selling season due to cooler temperatures and higher precipitation. These headwinds have subsided during the first four weeks of our second quarter with comparable-sales growth within our full-year guidance range.”

On the same day that Advance announced its first-quarter results, the company introduced the DieHard EV with xEV by Clarios. Advance says it’s the first auto parts retailer to sell 12-volt batteries designed specifically for hybrid and battery-electric vehicles.

“We believe the investments we’ve made in the company, our team members as well as our supplier partners are enabling us to capitalize on emerging opportunities while staying focused on the disciplined execution of our long-term strategic plan,” Greco said. “Consistent with this, we continue to build and strengthen a differentiated customer offering behind improved parts availability, industry-leading innovation and an enhanced online and in-store experience. This includes today’s announcement that Advance Auto Parts is the first-to-market with our exclusive DieHard EV battery for hybrid and battery electric vehicles. This innovative 12-volt battery will provide improved and longer-lasting battery performance for the increasing power demands of hybrid and electric vehicles.”

Advance reaffirmed its full-year guidance of net sales between $11.2 billion and $11.5 billion and comparable sales increasing by 1% to 3%, among other metrics.

“We continue to execute against our long-term plans, despite volatility within the broader macro environment,” said Jeff Shepherd, executive vice president and chief financial officer. “Based on our Q1 results and 2022 outlook, we’re reaffirming our 2022 guidance including comparable-store sales growth, adjusted operating-margin expansion and double-digit adjusted earnings-per-share growth. Importantly, we’re slightly increasing our adjusted diluted EPS guidance range reflecting year-to-date share repurchases.”

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