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Advance Auto Parts is celebrating 90 years of helping motorists advance on the road by inviting consumers to share their most memorable moments behind the wheel.

In celebration of its “Advanceiversary,” the brand is curating consumers’ most memorable moments on the road for the chance to win a year’s worth of free gasoline and possibly have their road trip recreated. Additionally, Advance is offering quadruple gas rewards now through July 20.

Through July 31, Advance’s “Drive of Your Life” campaign invites motorists to share their most memorable drives – from cross-country vacations with family or friends … to riding in the homecoming court … to traveling to your team’s bitter rival (and winning!) … to pulling in the driveway of your first home for the first time … to just putting the top down and feeling the breeze when you needed it most.

To submit the Drive of Your Life, motorists should visit

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or post on Twitter or Instagram, using #DriveOfYourLifeContest and tagging @advanceauto or @advanceautoparts respectively, now through July 31.

From those who post, Advance will select and announce each day beginning July 14 one consumer who will receive free Shell gasoline for a year. After the contest ends, Advance will hit the road to recreate select motorists’ drives of their lives.

“When we reflect on 90 years of commitment to customer care and confidence, we think about our journey behind the many miles we’ve helped motorists advance – both on the road and in their lives,” said Jason McDonell, Advance’s executive vice president of merchandising, marketing and e-commerce. “But even more so, we think about the inspiring, personal stories of those drives. We all have that one drive we’ll never forget – the ‘Drive of Your Life.’ To celebrate our last 90 years and inspire our next 90, we want to hear yours.”

Advance founder Arthur Taubman was a pioneer in curbside service, beginning the practice by installing tires upon purchase outside the store he worked. This is the root of inspiration for many of the services Advance offers today, including free battery and wiper-blade checks and installation, along with a leading parts selection that caters to motorists’ many needs, the company noted.

With the price of gasoline hovering around a record national average and the average vehicle age rising, Advance’s celebration comes at a time when motorists face challenges to create new memories on the road after two summers of uncertainty.

To further help motorists save this summer, all existing and new Advance Speed Perks Gas Rewards members will earn 20 cents off each gallon of gas for a single fill-up at participating Shell stations for every $50 spent at Advance stores across the country between July 13 and 20.

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      » SIGN UP:  link hidden, please login to view
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      As of November 14, 2024
      ($ in millions, except per share data)
       
      Low
       
      High
      Net sales from continuing operations
       
      Approx. $9,000
      Comparable store sales (1)
       
      Approx. (1.0%)
      Adjusted operating income margin from continuing operations
       
       
      0.25
      %
       
       
      0.75
      %
      Adjusted diluted EPS from continuing operations
       
      $
      (0.60
      )
       
      $
      0.00
       
      Capital expenditures
       
      $
      175
       
       
      $
      225
       
      Free cash flow (2)
       
      Approx. flat (including strategic costs)
      (1)
        The company calculates comparable store sales based on the change in store or branch sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. Acquired stores are included in the company's comparable store sales one year after acquisition. The company includes sales from relocated stores in comparable store sales from the original date of opening.
      (2)
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      Store operations Reduction in U.S. asset footprint - closing 523 Advance corporate stores, exiting 204 independent locations, and closing four distribution centers. Standardization of store operating model and improving labor productivity. Acceleration in pace of new store openings. Merchandising excellence Strategic sourcing to improve first costs and bring parts to market faster. Assortment management to enhance availability of parts. Pricing and promotions management to improve gross margin. Supply chain Consolidation of distribution centers to operate 13 large facilities by 2026. Opening of 60 market hub locations by mid-2027. Optimization of transportation routes and freight to lower costs and improve productivity. Financial Objectives (Advance Auto Parts continuing operations)
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      $8,400 - $8,600
       
      Approx. $9,000
      Comparable sales growth
       
      0.50% - 1.50%
       
      Positive low-single-digit %
      New store growth
       
      30 new stores
       
      50 to 70 new stores
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      2.00% - 3.00%
       
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      link hidden, please login to view). To join by phone, please pre-register online for dial-in and passcode information. Upon registering, participants will receive a confirmation with call details and a registrant ID. While registration is open through the live call, the company suggests registering a day in advance or at minimum 10 minutes before the start of the call. A replay of the conference call will be available on the company's Investor Relations website for one year.
      About Advance Auto Parts
      Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. As of October 5, 2024, Advance operated 4,781 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The company also served 1,125 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Additional information about Advance, including employment opportunities, customer services and online shopping for parts, accessories and other offerings can be found at 
      link hidden, please login to view. Forward-Looking Statements
      Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “target,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the company’s strategic initiatives, restructuring and asset optimization plans, financial objectives, operational plans and objectives, statements about the sale of the company’s Worldpac business, including statements regarding the benefits of the sale and use of proceeds therefrom, statements regarding expectations for economic conditions, future business and financial performance, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the company’s views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, the company’s ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, risks associated with the company’s restructuring and asset optimization plans, deterioration of general macroeconomic conditions, geopolitical factors, the highly competitive nature of the industry, demand for the company’s products and services, ongoing risks associated with the disposition of Worldpac, the company’s ability to maintain credit ratings, risks relating to the impairment of assets, including intangible assets such as goodwill, access to financing on favorable terms, complexities in the company’s inventory and supply chain and challenges with transforming and growing its business. Please refer to “Item 1A. Risk Factors” of the company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by the company’s subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements.
      Advance Auto Parts, Inc. and Subsidiaries
      Condensed Consolidated Balance Sheets
      (In thousands) (unaudited)
       
       
        October 5, 2024
       
      December 30, 2023
      Assets
         
       
       
      Current assets:
         
       
       
      Cash and cash equivalents
        $
      464,492
       
      $
      488,049
      Receivables, net
         
      668,937
       
       
      609,528
      Inventories, net
         
      4,042,200
       
       
      3,893,569
      Other current assets
         
      180,448
       
       
      180,402
      Current assets held for sale
         
      2,137,690
       
       
      1,205,473
      Total current assets
         
      7,493,767
       
       
      6,377,021
      Property and equipment, net
         
      1,479,738
       
       
      1,555,985
      Operating lease right-of-use assets
         
      2,399,630
       
       
      2,347,073
      Goodwill
         
      600,182
       
       
      601,159
      Other intangible assets, net
         
      409,501
       
       
      419,161
      Other noncurrent assets
         
      85,366
       
       
      85,988
      Noncurrent assets held for sale
         

       
       
      889,939
      Total assets
        $
      12,468,184
       
      $
      12,276,326
      Liabilities and Stockholders' Equity
         
       
       
      Current liabilities:
         
       
       
      Accounts payable
        $
      3,498,460
       
      $
      3,526,079
      Accrued expenses
         
      641,914
       
       
      616,067
      Other current liabilities
         
      458,343
       
       
      396,408
      Current liabilities held for sale
         
      994,824
       
       
      768,851
      Total current liabilities
         
      5,593,541
       
       
      5,307,405
      Long-term debt
         
      1,788,513
       
       
      1,786,361
      Noncurrent operating lease liabilities
         
      2,018,383
       
       
      2,039,908
      Deferred income taxes
         
      380,118
       
       
      355,635
      Other long-term liabilities
         
      89,949
       
       
      83,538
      Noncurrent liabilities held for sale
         

       
       
      183,751
      Total stockholders' equity
         
      2,597,680
       
       
      2,519,728
      Total liabilities and stockholders’ equity
        $
      12,468,184
       
      $
      12,276,326
      Advance Auto Parts, Inc. and Subsidiaries
      Condensed Consolidated Statements of Operations
      (In thousands, except per share data) (unaudited)
       
       
       
       
       
       
        Twelve Weeks Ended
       
      Forty Weeks Ended
       
        October 5, 2024
       
      October 7, 2023 (1)
       
      October 5, 2024
       
      October 7, 2023 (1)
      Net sales
        $
      2,147,991
       
       
      $
      2,218,205
       
       
      $
      7,098,302
       
       
      $
      7,194,670
       
      Cost of sales, including purchasing and warehousing costs
         
      1,240,093
       
       
       
      1,400,638
       
       
       
      4,036,898
       
       
       
      4,154,190
       
      Gross profit
         
      907,898
       
       
       
      817,567
       
       
       
      3,061,404
       
       
       
      3,040,480
       
      Selling, general and administrative expenses
         
      907,495
       
       
       
      896,145
       
       
       
      2,954,707
       
       
       
      2,959,238
       
      Operating income (loss)
         
      403
       
       
       
      (78,578
      )
       
       
      106,697
       
       
       
      81,242
       
      Other, net:
         
       
       
       
       
       
       
      Interest expense
         
      (18,805
      )
       
       
      (19,375
      )
       
       
      (62,127
      )
       
       
      (69,948
      )
      Other income (expense), net
         
      2,393
       
       
       
      (305
      )
       
       
      12,769
       
       
       
      232
       
      Total other, net
         
      (16,412
      )
       
       
      (19,680
      )
       
       
      (49,358
      )
       
       
      (69,716
      )
      (Loss) income before provision for income taxes
         
      (16,009
      )
       
       
      (98,258
      )
       
       
      57,339
       
       
       
      11,526
       
      Provision for income taxes
         
      9,354
       
       
       
      (24,072
      )
       
       
      34,763
       
       
       
      6,360
       
      Net (loss) income from continuing operations
         
      (25,363
      )
       
       
      (74,186
      )
       
       
      22,576
       
       
       
      5,166
       
      Net income from discontinued operations
         
      19,349
       
       
       
      12,149
       
       
       
      56,413
       
       
       
      59,696
       
      Net (loss) income
        $
      (6,014
      )
       
      $
      (62,037
      )
       
      $
      78,989
       
       
      $
      64,862
       
       
         
       
       
       
       
       
       
      Basic (loss) earnings per common share from continuing operations
        $
      (0.42
      )
       
      $
      (1.25
      )
       
      $
      0.38
       
       
      $
      0.09
       
      Basic earnings per common share from discontinued operations
         
      0.32
       
       
       
      0.20
       
       
       
      0.95
       
       
       
      1.00
       
      Basic (loss) earnings per common share
        $
      (0.10
      )
       
      $
      (1.05
      )
       
      $
      1.33
       
       
      $
      1.09
       
      Basic weighted-average common shares outstanding
         
      59,684
       
       
       
      59,474
       
       
       
      59,618
       
       
       
      59,411
       
       
         
       
       
       
       
       
       
      Diluted (loss) earnings per common share from continuing operations
        $
      (0.42
      )
       
      $
      (1.24
      )
       
      $
      0.38
       
       
      $
      0.09
       
      Diluted earnings per common share from discontinued operations
         
      0.32
       
       
       
      0.20
       
       
       
      0.94
       
       
       
      1.00
       
      Diluted (loss) earnings per common share
        $
      (0.10
      )
       
      $
      (1.04
      )
       
      $
      1.32
       
       
      $
      1.09
       
      Diluted weighted-average common shares outstanding
         
      59,902
       
       
       
      59,630
       
       
       
      59,878
       
       
       
      59,588
       
      (1)
        The condensed consolidated statement of operations for the twelve and forty weeks ended October 7, 2023, reflects the correction of non-material errors the company discovered in previously reported results.
      Advance Auto Parts, Inc. and Subsidiaries
      Condensed Consolidated Statements of Cash Flows
      (In thousands) (unaudited)
       
         
       
       
       
        Forty Weeks Ended
       
        October 5, 2024
       
      October 7, 2023
      Cash flows from operating activities:
         
       
       
      Net income
        $
      78,989
       
       
      $
      64,862
       
      Net income from discontinued operations
         
      56,413
       
       
       
      59,696
       
      Net income from continuing operations
         
      22,576
       
       
       
      5,166
       
      Adjustments to reconcile net income to net cash used in operating activities:
         
       
       
      Depreciation and amortization
         
      217,197
       
       
       
      206,658
       
      Share-based compensation
         
      33,810
       
       
       
      33,777
       
      (Gain) Loss on sale and impairment of long-lived assets
         
      (14,273
      )
       
       
      1,886
       
      Provision for deferred income taxes
         
      24,289
       
       
       
      (27,811
      )
      Other, net
         
      2,986
       
       
       
      2,436
       
      Net change in:
         
       
       
      Receivables, net
         
      (60,383
      )
       
       
      (161,629
      )
      Inventories, net
         
      (152,229
      )
       
       
      (110,871
      )
      Accounts payable
         
      (25,225
      )
       
       
      (77,336
      )
      Accrued expenses
         
      30,794
       
       
       
      171,117
       
      Other assets and liabilities, net
         
      1,477
       
       
       
      (71,707
      )
      Net cash provided by (used in) operating activities from continuing operations
         
      81,019
       
       
       
      (28,314
      )
      Net cash provided by operating activities from discontinued operations
         
      76,917
       
       
       
      57,148
       
      Net cash provided by operating activities
         
      157,936
       
       
       
      28,834
       
      Cash flows from investing activities:
         
       
       
      Purchases of property and equipment
         
      (129,714
      )
       
       
      (174,186
      )
      Proceeds from sales of property and equipment
         
      13,232
       
       
       
      2,001
       
      Net cash used in investing activities of continuing operations
         
      (116,482
      )
       
       
      (172,185
      )
      Net cash used in investing activities of discontinued operations
         
      (7,988
      )
       
       
      (13,015
      )
      Net cash used in investing activities
         
      (124,470
      )
       
       
      (185,200
      )
      Cash flows from financing activities:
         
       
       
      Borrowings under credit facilities
         

       
       
       
      4,805,000
       
      Payments on credit facilities
         

       
       
       
      (4,990,000
      )
      Borrowings on senior unsecured notes
         

       
       
       
      599,571
       
      Dividends paid
         
      (44,882
      )
       
       
      (194,322
      )
      Purchases of noncontrolling interests
         
      (9,101
      )
       
       

       
      Proceeds from the issuance of common stock
         
      2,995
       
       
       
      3,045
       
      Repurchases of common stock
         
      (5,601
      )
       
       
      (14,237
      )
      Other, net
         
      (1,143
      )
       
       
      (5,010
      )
      Net cash (used in) provided by financing activities
         
      (57,732
      )
       
       
      204,047
       
       
        Forty Weeks Ended
       
        October 5, 2024
       
      October 7, 2023
      Effect of exchange rate changes on cash
         
      11,766
       
       
       
      (1,932
      )
       
         
       
       
      Net (decrease) increase in cash and cash equivalents
         
      (12,500
      )
       
       
      45,749
       
      Cash and cash equivalents, beginning of period
         
      503,471
       
       
       
      270,805
       
      Cash and cash equivalents, end of period
        $
      490,971
       
       
      $
      316,554
       
       
         
       
       
      Summary of cash and cash equivalents:
         
       
       
      Cash and cash equivalents of continuing operations, end of period
        $
      464,492
       
       
      $
      308,804
       
      Cash and cash equivalents of discontinued operations, end of period
         
      26,479
       
       
       
      7,750
       
      Cash and cash equivalents , end of period
        $
      490,971
       
       
      $
      316,554
       
      (1)
        The condensed consolidated statement of cash flows for the forty weeks ended October 7, 2023, reflects the correction of non-material errors the company discovered in previously reported results.
      Restatement of Previously Issued Financial Statements
      During the fiscal year ended December 30, 2023, the company identified errors primarily impacting cost of sales, selling, general and administrative costs and other income/expenses, net, incurred in prior years but not previously recognized. The company evaluated the errors and determined that the related impacts were not material to the previously issued consolidated financial statements for any prior period. A summary of the corrections to the impacted financial statement line items in the company's Condensed Consolidated Statement of Operations for the twelve and forty weeks ended October 7, 2023, and the company's Condensed Consolidated Statement of Cash Flows for the forty weeks ended October 7, 2023, included in the company's previously filed Annual Report on Form 10-K are presented below:
      Condensed Consolidated Statement of Operations
      October 7, 2023
       
        Twelve Weeks Ended
      (in thousands)
        As Previously Reported
       
      Adjustments
       
      As Corrected
       
      Discontinued Operations
       
      As Corrected, after Discontinued Operations
      Cost of sales
        $
      1,732,420
       
       
      $
      16,379
       
       
      $
      1,748,799
       
       
      $
      348,161
       
      $
      1,400,638
       
      Gross profit
         
      986,659
       
       
       
      (16,379
      )
       
       
      970,280
       
       
       
      152,713
       
       
      817,567
       
      Selling, general and administrative expenses
         
      1,030,355
       
       
       
      878
       
       
       
      1,031,233
       
       
       
      135,088
       
       
      896,145
       
      Operating (loss) income
         
      (43,696
      )
       
       
      (17,257
      )
       
       
      (60,953
      )
       
       
      17,625
       
       
      (78,578
      )
      (Loss) Income before provision for income taxes
         
      (64,319
      )
       
       
      (17,257
      )
       
       
      (81,576
      )
       
       
      16,682
       
       
      (98,258
      )
      Provision for income taxes
         
      (15,686
      )
       
       
      (3,853
      )
       
       
      (19,539
      )
       
       
      4,533
       
       
      (24,072
      )
      Net (loss) income
        $
      (48,633
      )
       
      $
      (13,404
      )
       
      $
      (62,037
      )
       
      $
      12,149
       
      $
      (74,186
      )
       
         
       
       
       
       
       
       
       
       
      Basic (loss) earnings per share
        $
      (0.82
      )
       
      $
      (0.23
      )
       
      $
      (1.05
      )
       
      $
      0.20
       
      $
      (1.25
      )
      Diluted (loss) earnings per common share
        $
      (0.82
      )
       
      $
      (0.22
      )
       
      $
      (1.04
      )
       
      $
      0.20
       
      $
      (1.24
      )
      Condensed Consolidated Statement of Operations
      October 7, 2023
       
        Forty Weeks Ended
      (in thousands)
        As Previously Reported
       
      Adjustments
       
      As Corrected
       
      Discontinued Operations
       
      As Corrected, after Discontinued Operations
      Cost of sales
        $
      5,220,200
       
      $
      29,877
       
       
      $
      5,250,077
       
      $
      1,095,887
       
      $
      4,154,190
      Gross profit
         
      3,602,538
       
       
      (29,877
      )
       
       
      3,572,661
       
       
      532,181
       
       
      3,040,480
      Selling, general and administrative expenses
         
      3,407,445
       
       
      2,272
       
       
       
      3,409,717
       
       
      450,479
       
       
      2,959,238
      Operating income (loss)
         
      195,093
       
       
      (32,149
      )
       
       
      162,944
       
       
      81,702
       
       
      81,242
      Income (loss) before provision for income taxes
         
      124,894
       
       
      (32,149
      )
       
       
      92,745
       
       
      81,219
       
       
      11,526
      Provision for income taxes
         
      34,649
       
       
      (6,766
      )
       
       
      27,883
       
       
      21,523
       
       
      6,360
      Net income (loss)
        $
      90,245
       
      $
      (25,383
      )
       
      $
      64,862
       
      $
      59,696
       
      $
      5,166
       
         
       
       
       
       
       
       
       
       
      Basic earnings (loss) per share
        $
      1.52
       
      $
      (0.43
      )
       
      $
      1.09
       
      $
      1.00
       
      $
      0.09
      Diluted earnings (loss) per common share
        $
      1.51
       
      $
      (0.42
      )
       
      $
      1.09
       
      $
      1.00
       
      $
      0.09
      Condensed Consolidated Statement of Cash Flows
      Forty Weeks Ended October 7, 2023
      (in thousands)
        As Previously Reported
       
      Adjustments
       
      As Corrected
       
      Discontinued Operations
       
      As Corrected, after Discontinued Operations
      Net income
        $
      90,245
       
       
      $
      (25,383
      )
       
      $
      64,862
       
       
      $
      59,696
       
       
      $
      5,166
       
      Provision for deferred income taxes
         
      (33,059
      )
       
       
      5,248
       
       
       
      (27,811
      )
       
       

       
       
       
      (27,811
      )
      Other, net
         
      1,499
       
       
       
      937
       
       
       
      2,436
       
       
       

       
       
       
      2,436
       
      Net change in:
         
       
       
       
       
       
       
       
       
      Receivables, net
         
      (170,371
      )
       
       
      (9,519
      )
       
       
      (179,890
      )
       
       
      (18,261
      )
       
       
      (161,629
      )
      Inventories, net
         
      (41,025
      )
       
       
      15,442
       
       
       
      (25,583
      )
       
       
      85,288
       
       
       
      (110,871
      )
      Accounts payable
         
      (191,871
      )
       
       
      28,500
       
       
       
      (163,371
      )
       
       
      (86,035
      )
       
       
      (77,336
      )
      Accrued expenses
         
      145,704
       
       
       
      21,521
       
       
       
      167,225
       
       
       
      (3,892
      )
       
       
      171,117
       
      Other assets and liabilities, net
         
      (45,015
      )
       
       
      (38,316
      )
       
       
      (83,331
      )
       
       
      (11,624
      )
       
       
      (71,707
      )
      Net cash provided by (used in) operating activities
         
      30,404
       
       
       
      (1,570
      )
       
       
      28,834
       
       
       
      57,148
       
       
       
      (28,314
      )
      Other, net (1)
         
      (4,073
      )
       
       
      (937
      )
       
       
      (5,010
      )
       
       

       
       
       
      (5,010
      )
      Net cash provided by financing activities
         
      204,984
       
       
       
      (937
      )
       
       
      204,047
       
       
       
       
       
      Effect of exchange rate changes on cash
         
      (1,942
      )
       
       
      10
       
       
       
      (1,932
      )
       
       
       
       
      Net increase (decrease) in cash and cash equivalents
         
      48,246
       
       
       
      (2,497
      )
       
       
      45,749
       
       
       
       
       
      Cash and cash equivalents, beginning of period
         
      269,282
       
       
       
      1,523
       
       
       
      270,805
       
       
       
      50,670
       
       
       
      220,135
       
      Cash and cash equivalents, end of period
        $
      317,528
       
       
      $
      (974
      )
       
      $
      316,554
       
       
      $
      7,750
       
       
      $
      308,804
       
      (1)
        The summary of corrections table above inadvertently omitted disclosure for proceeds from the issuance of common stock as follows: $3.0 million as previously reported, $0 adjustments and $3.0 million as corrected.
      Reconciliation of Non-GAAP Financial Measures
      The company's financial results include certain financial measures not derived in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Non-GAAP financial measures, including Adjusted Net income, Adjusted EPS, Adjusted SG&A Margin, and Adjusted Operating Income, should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows.
      The company has presented these non-GAAP financial measures as the company believes that the presentation of the financial results that exclude (1) transformation expenses under the company’s turnaround plan, (2) other significant costs and (3) nonrecurring tax expense are useful and indicative of the company's base operations because the expenses vary from period to period in terms of size, nature and significance. These measures assist in comparing the company’s current operating results with past periods and with the operational performance of other companies in the industry. The disclosure of these measures allows investors to evaluate the company’s performance using the same measures management uses in developing internal budgets and forecasts and in evaluating management’s compensation. Included below is a description of the expenses the company has determined are not normal, recurring cash operating expenses necessary to operate the company’s business and the rationale for why providing these measures is useful to investors as a supplement to the GAAP measures.
      Transformation Expenses — Costs incurred in connection with the company's turnaround plan and specific transformative activities related to asset optimization that the company does not view to be normal cash operating expenses. These expenses primarily include:
      Distribution network optimization — Costs primarily relating to the conversion of the stores and DCs to market hubs, including temporary labor, team member severance, long-lived asset write off charges and incremental depreciation, as a result of accelerating depreciation of long-lived assets over a shorter useful life as a result of the optimization plans. Third-party professional services — Costs relating to non-recurring services rendered by third-party vendors assisting with the turnaround initiatives. Other Expenses — Costs incurred by the company that are not viewed as normal cash operating expenses and vary from period to period in terms of size, nature, and significance, including but not limited to executive turnover and incremental costs associated with remediating the company's previously-disclosed material weaknesses in internal control over financial reporting.
      Nonrecurring Tax Expense — Income tax incurred by the company from the book to tax basis difference in the Worldpac Canada stock directly resulting from the sale of Worldpac.
      The following tables include reconciliations of this information to the most comparable GAAP measures:
      Reconciliation of Adjusted Net Income and Adjusted EPS:
       
        Twelve Weeks Ended
       
      Forty Weeks Ended
      (in thousands, except per share data)
        October 5, 2024
       
      October 7, 2023
       
      October 5, 2024
       
      October 7, 2023
      Net (loss) income from continuing operations (GAAP)
        $
      (25,363
      )
       
      $
      (74,186
      )
       
      $
      22,576
       
       
      $
      5,166
       
      Selling, general and administrative
      adjustments:
         
       
       
       
       
       
       
      Transformation expenses:
         
       
       
       
       
       
       
      Distribution network optimization
         
      8,909
       
       
       

       
       
       
      13,943
       
       
       

       
      Third-party professional services
         
      3,582
       
       
       
      50
       
       
       
      5,301
       
       
       
      320
       
      Other charges:
         
       
       
       
       
       
       
      Executive turnover
         
      87
       
       
       
      3,799
       
       
       
      1,561
       
       
       
      5,360
       
      Material weakness remediation
         
      1,293
       
       
       
      429
       
       
       
      3,649
       
       
       
      429
       
      Other significant costs (1)
         
      2,394
       
       
       

       
       
       
      3,491
       
       
       

       
      Provision for income taxes on adjustments (2)
         
      (4,066
      )
       
       
      (1,070
      )
       
       
      (6,986
      )
       
       
      (1,527
      )
      Nonrecurring tax expense
         
      10,000
       
       
       

       
       
       
      10,000
       
       
       

       
      Adjusted net (loss) income (Non-GAAP)
        $
      (3,164
      )
       
      $
      (70,978
      )
       
      $
      53,535
       
       
      $
      9,748
       
       
         
       
       
       
       
       
       
      Diluted (loss) earnings per share from continuing operations (GAAP)
        $
      (0.42
      )
       
      $
      (1.24
      )
       
      $
      0.38
       
       
      $
      0.09
       
      Adjustments, net of tax
         
      0.38
       
       
       
      0.05
       
       
       
      0.52
       
       
       
      0.08
       
      Adjusted EPS (Non-GAAP)
        $
      (0.04
      )
       
      $
      (1.19
      )
       
      $
      0.90
       
       
      $
      0.17
        (1)
        During the twelve and forty weeks ended October 5, 2024, the Company recorded expense of $2.4 million and $3.5 million for costs incurred following a cybersecurity incident that occurred over these periods.
      (2)
        The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustments.
      Reconciliation of Adjusted Selling, General and Administrative Expenses
       
        Twelve Weeks Ended
       
      Forty Weeks Ended
      (in thousands)
        October 5, 2024
       
      October 7, 2023
       
      October 5, 2024
       
      October 7, 2023
      SG&A (GAAP)
        $
      907,495
       
      $
      896,145
       
      $
      2,954,707
       
      $
      2,959,238
      SG&A adjustments
         
      16,265
       
       
      4,278
       
       
      27,945
       
       
      6,109
      Adjusted SG&A (Non-GAAP)
        $
      891,230
       
      $
      891,867
       
      $
      2,926,762
       
      $
      2,953,129
      Reconciliation of Adjusted Operating Income:
       
        Twelve Weeks Ended
       
      Forty Weeks Ended
      (in thousands)
        October 5, 2024
       
      October 7, 2023
       
      October 5, 2024
       
      October 7, 2023
      Operating income (GAAP)
        $
      403
       
      $
      (78,578
      )
       
      $
      106,697
       
      $
      81,242
      SG&A adjustments
         
      16,265
       
       
      4,278
       
       
       
      27,945
       
       
      6,109
      Adjusted operating income (Non-GAAP)
        $
      16,668
       
      $
      (74,300
      )
       
      $
      134,642
       
      $
      87,351
      NOTE:
        Adjusted SG&A, Adjusted SG&A as a percentage of Net sales, Adjusted operating income and Adjusted operating income margin (calculated by dividing Adjusted operating income by Net sales) are non-GAAP measures. Management believes these non-GAAP measures are important metrics in assessing the overall performance of the business and utilizes these metrics in its ongoing reporting. On that basis, management believes it is useful to provide these metrics to investors and prospective investors to evaluate the company’s operating performance across periods adjusting for these items (refer to the reconciliations of non-GAAP adjustments above). These non-GAAP measures might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures reported by other companies. Non-GAAP measures should not be used by investors or third parties as the sole basis for formulating investment decisions, as they may exclude a number of important cash and non-cash recurring items.
      Reconciliation of Free Cash Flow: (1)
         
       
       
       
        Forty Weeks Ended
      (in thousands)
        October 5, 2024
       
      October 7, 2023
      Cash flows provided by operating activities of continuing operations
        $
      81,019
       
       
      $
      (28,314
      )
      Purchases of property and equipment
         
      (129,714
      )
       
       
      (174,186
      )
      Free cash flow
        $
      (48,695
      )
       
      $
      (202,500
      )
      Adjusted Debt to Adjusted EBITDAR: (1)
         
       
       
       
        Four Quarters Ended
      (In thousands, except adjusted debt to adjusted EBITDAR ratio)
        October 5, 2024
       
      December 30, 2023
      Total GAAP debt
        $
      1,788,513
       
       
      $
      1,786,361
       
      Add: Operating lease liabilities
         
      2,711,578
       
       
       
      2,660,827
       
      Adjusted debt
        $
      4,500,091
       
       
      $
      4,447,188
       
       
         
       
       
      GAAP Net income
        $
      50,819
       
       
      $
      29,735
       
      Depreciation and amortization
         
      309,566
       
       
       
      306,454
       
      Interest expense
         
      80,559
       
       
       
      88,055
       
      Other expense, net
         
      (16,174
      )
       
       
      (5,525
      )
      Provision for income taxes
         
      23,843
       
       
       
      2,112
       
      Rent expense
         
      638,232
       
       
       
      613,859
       
      Share-based compensation
         
      46,557
       
       
       
      45,647
       
      Other charges (2)
         
      40,091
       
       
       
      12,419
       
      Transformation related charges
         
      27,131
       
       
       
      29,719
       
      Adjusted EBITDAR
        $
      1,200,624
       
       
      $
      1,122,475
       
       
         
       
       
      Adjusted Debt to Adjusted EBITDAR
         
      3.7
       
       
       
      4.0
       
      (1)
        The four quarters ended October 5, 2024, includes the correction of non-material errors the company discovered in previously reported results.
      (2)
        The adjustments to the four quarters ended October 5, 2024, and December 30, 2023, include expenses associated with the company's material weakness remediation efforts and executive turnover.
       
         
      NOTE:
        Management believes its Adjusted Debt to Adjusted EBITDAR ratio (“leverage ratio”) is a key financial metric for debt securities, as reviewed by rating agencies, and believes its debt levels are best analyzed using this measure. The company’s goal is to maintain an investment grade rating. The company's credit rating directly impacts the interest rates on borrowings under its existing credit facility and could impact the company's ability to obtain additional funding. If the company was unable to maintain its investment grade rating, this could negatively impact future performance and limit growth opportunities. Similar measures are utilized in the calculation of the financial covenants and ratios contained in the company's financing arrangements. The leverage ratio calculated by the company is a non-GAAP measure and should not be considered a substitute for debt to net earnings, as determined in accordance with GAAP. The company adjusts the calculation to remove rent expense and to add back the company’s existing operating lease liabilities related to their right-of-use assets to provide a more meaningful comparison with the company’s peers and to account for differences in debt structures and leasing arrangements. The company’s calculation of its leverage ratio may not be calculated in the same manner as other companies, and thus may not be comparable to similarly titled measures used by other companies.
      Store Information
      During the forty weeks ended October 5, 2024, 23 stores were opened and 29 were closed, resulting in a total of 4,781 stores as of October 5, 2024, compared with a total of 4,786 stores as of December 30, 2023.
      The below table summarizes the changes in the number of company-operated stores during the twelve and forty weeks ended October 5, 2024:
       
       
      Twelve Weeks Ended
       
       
      AAP
       
      CARQUEST
       
      Total
      July 15, 2024
       
      4,484
       
       
      292
       
       
      4,776
       
      New
       
      9
       
       

       
       
      9
       
      Closed
       
      (2
      )
       
      (2
      )
       
      (4
      )
      Converted
       
      1
       
       
      (1
      )
       

       
      October 5, 2024
       
      4,492
       
       
      289
       
       
      4,781
       
       
       
      Forty Weeks Ended
       
       
      AAP
       
      CARQUEST
       
      Total
      December 30, 2023
       
      4,484
       
       
      302
       
       
      4,786
       
      New
       
      23
       
       

       
       
      23
       
      Closed
       
      (17
      )
       
      (12
      )
       
      (29
      )
      Converted
       
      2
       
       
      (1
      )
       
      1
       
      October 5, 2024
       
      4,492
       
       
      289
       
       
      4,781
       
       

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