Advance Auto Parts Q2 sales miss estimates, hurt by weak DIY demand
AAP•Analyst coverage and valuation
- The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 23 "hold" and 3 "sell" or "strong sell"
- The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."
- Wall Street's median 12-month price target for Advance Auto Parts Inc is $60.00, about 6.8% above its August 19 closing price of $56.18
- The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago
Full-year 2026 outlook updated
- Company reaffirms full-year 2026 net sales guidance of $8.49 bln to $8.58 bln
- Advance Auto Parts raises full-year 2026 adjusted diluted EPS outlook to $2.60-$3.30
- Company revises 2026 openings to 30-35 stores from 40-45 and 15-20 market hubs from 10-15
Result drivers and key details
- CHANNEL MIX - Pro channel saw low-single-digit growth, but overall sales were hurt by weaker DIY demand due to tighter household budgets, especially in the last four weeks of the qtr
- TARIFF REFUNDS - Adjusted gross profit and adjusted EPS benefited from $26 mln in tariff refunds
- PRODUCT MARGIN - Gross margin improvement was primarily driven by expansion in product margin supported by merchandising initiatives
