Advance Auto Parts Raises Guidance, Announces Major Restructuring

Advance Auto Parts beat third-quarter expectations with adjusted EPS of $0.92 (vs. roughly $0.74–$0.77 expected) and revenue of about $2.0–$2.04 billion; same-store sales rose ~3% led by Pro-channel strength and shares jumped in premarket trading. Management raised and tightened full-year 2025 guidance to $1.75–$1.85 in adjusted EPS and $8.55–$8.60 billion in revenue and said it is on track for roughly 200 basis points of margin expansion in the first year of its turnaround. The company announced an aggressive restructuring — closing roughly 500 corporate and 200 independent stores and consolidating distribution centers from 38 to 12 — aimed at reducing costs and targeting about 7% adjusted operating margin by 2027. Those actions have generated upfront expenses and inventory write-downs that have pressured near-term profitability even as adjusted gross profit margins improved. Analysts say the bullish case depends on execution and margin recovery rather than top-line growth, with consensus forecasting modest or flat revenue growth while earnings could improve if management hits its cost and margin targets.