Advance Auto Parts Confirms $8.4B-$8.6B Sales Target for 2025 Amidst Turnaround and Supply Chain Improvements

Advance Auto Parts has reaffirmed its sales target of $8.4B-$8.6B for 2025. The company's Q2 results showed a return to profitability, driven by store footprint optimization and progress on strategic initiatives. Comparable sales growth was flat for the quarter.

Advance Auto Parts, Inc. (NYSE:AAP) has reaffirmed its sales target for the full year 2025, projecting net sales in the range of $8.4 billion to $8.6 billion. The company's second quarter 2025 results highlighted a return to profitability, driven by strategic initiatives and store footprint optimization, despite comparable sales growth remaining flat for the quarter.

The company reported net sales of $2.0 billion for Q2 2025, representing a 7.7% year-over-year decline. However, the company achieved comparable store sales growth of 0.1%, indicating a stabilization after several quarters of declines. Profitability was restored with adjusted diluted earnings per share of $0.69 for the quarter, driven by improved margin performance with an adjusted gross margin of 43.8% and an adjusted operating income margin of 3.0% [2].

Advance Auto Parts' strategic transformation strategy, centered around the pillars of "Right Parts," "Right Place," and "Right Service," has shown progress. The company reported notable improvements in store availability, reaching the mid-90% range in Q2 2025, and reducing the "Time to Serve" metric to within the target range of 30 to 40 minutes [2].

The company also announced a proactive reorganization of its debt structure, aiming to maintain its investment grade credit rating while providing operational flexibility. Looking ahead, Advance Auto Parts targets net sales of approximately $9 billion for FY2027, with an adjusted operating income margin of approximately 7% and a net leverage ratio of 2.0-2.5x [2].

While the company's near-term profitability remains cautious, the strategic initiatives and operational improvements suggest that the transformation efforts are beginning to yield results. Investors should continue to monitor the company's progress as it works towards its ambitious long-term objectives [2].

References:
[1] https://www.marketscreener.com/news/advance-auto-parts-inc-provides-earnings-guidance-for-the-full-year-2025-ce7c51d9d88cfe23
[2] https://ca.investing.com/news/company-news/advance-auto-parts-q2-2025-slides-return-to-profitability-amid-ongoing-transformation-93CH-4158970