Key Points – Advance Auto Parts delivered a strong Q1, with comparable sales up 3.5% and net sales of $2.6 billion, its best quarterly comp growth in five years.
The Pro channel led the improvement, while DIY also returned to positive growth. – Profitability improved sharply as gross margin expanded more than 210 basis points and adjusted operating margin rose to 3.8%
Adjusted diluted EPS came in at $0.77, versus a loss a year earlier, and free cash outflow improved significantly. – The company reaffirmed its 2026 outlook, including comparable sales growth of 1% to 2% and adjusted EPS of $2.40 to $3.10. Management also highlighted ongoing strategic initiatives in merchandising, supply chain, store expansion, and its new loyalty program. – 3 Under-the-Radar Earnings Surprises Could Signal a New Trend Advance Auto Parts (NYSE:AAP) reported what executives described as a solid start to fiscal 2026, with first-quarter comparable sales rising 3.5%, the company’s strongest quarterly growth in five years. President and Chief Executive Officer Shane O’Kelly said the results were driven primarily by the company’s Pro channel, particularly its focus on Main Street professional customers, along with improved parts availability and customer service.
The DIY channel also returned to positive growth after softness in the prior quarter. – From Rust to Riches: 2 Auto Parts Names Built for 2026 “Our Q1 performance reflects continued improvement in parts availability and customer service, which is helping us respond to favorable industry dynamics,” O’Kelly said on the company’s earnings call. Sales Improve as Pro Business Leads Executive Vice President and Chief Financial Officer Ryan Grimsland said net sales for the quarter were $2.6 billion, up 1% from the prior year. Comparable sales increased 3.5%, offset in part by a two-point headwind from cycling $51 million in liquidation sales tied to store optimization activity completed in the first quarter of last year. – Advance Auto…