Advance Auto Parts Inc. (NYSE:AAP) stock surged Thursday after the company delivered stronger-than-expected quarterly results, driven by improving demand trends across both professional and do-it-yourself customers.
Management also pointed to gains from merchandising initiatives, stronger parts availability and customer engagement efforts, while signaling caution around consumer spending pressure, elevated gas prices and geopolitical uncertainty.
Quarterly Details
The company reported first-quarter adjusted earnings per share of 77 cents, beating the analyst consensus estimate of 45 cents. Quarterly sales of $2.614 billion outpaced the Street view of $2.579 billion.
First-quarter 2025 net sales included approximately $51 million from stores closed during the first quarter of 2025 under the company’s optimization program tied to its 2024 restructuring plan.
Comparable-store sales increased 3.5% in the first quarter of 2026.
Adjusted gross profit rose to $1.2 billion in the first quarter from $1.1 billion a year earlier, while adjusted gross margin expanded to 45.1% of net sales from 42.9%.
The margin expansion was primarily driven by higher product margins supported by merchandising initiatives.
Results …