Advance Auto Parts Q3 sales miss, adjusted EPS beats estimates
AAP•Advance Auto Parts reported Q3 sales of $2.01 billion, below the $2.04 billion consensus, while adjusted EPS of $0.79 beat estimates of $0.77. The company raised its FY 2026 free cash flow outlook to about $150 million and expects net sales of about $8.5 billion and adjusted diluted EPS of $2.75 to $3.10.
1. Quarterly results
Q3 comparable store sales fell 1.2%. The company reported gross margin of 44.6% and EPS of $0.25.
2. Sales trends
Advance Auto Parts said Pro channel sales grew in the low-single-digit range, with Main Street Pro showing particular strength. DIY sales declined in the low-single-digit range, but improved from negative mid-single-digit levels at the start of the quarter. The company attributed lower SG&A as a percentage of sales to disciplined expense management.
3. FY 2026 outlook
The company now expects FY 2026 net sales of about $8.5 billion and adjusted diluted EPS of $2.75 to $3.10, and raised its free cash flow guidance to about $150 million.
