07/17/2026

Advance Auto Parts Gains Momentum in Q1

Source: aftermarketNews

Advance Auto Parts reported stronger than expected first quarter 2026 results, driven by improvements in delivery times, inventory availability and pricing alignment that are helping the company regain momentum.

According to Northcoast Research, Advance reported adjusted diluted earnings per share of $0.77, ahead of both Northcoast’s estimate of $0.69 and the consensus estimate of $0.43. Total sales reached $2.6 billion, in line with expectations, while same store sales increased 3.5%, topping the consensus estimate of 1.9%.

Northcoast Research said growth in the company’s up and down the street business continues to support sales gains. The firm noted that Advance has strengthened its position as a preferred parts supplier among repair shops following operational changes that previously created inconsistencies in delivery times and product availability.

Those earlier disruptions followed Advance’s exit from the West Coast and a restructuring of its distribution center network from 50 facilities to 16. According to Northcoast Research, the company has since improved delivery times from roughly 50 minutes to 40 minutes while adding more than 100,000 SKUs to its assortment.

The research firm also highlighted improvements in Advance’s pricing strategy. Previously, the company’s pricing was often below competitors, but recent survey work indicates pricing is now more closely aligned with the market. Northcoast said that despite higher pricing, Advance continued to grow sales and gain market share because repair shops prioritize availability and speed over modest price differences.

Operational changes are also contributing to margin expansion. First quarter gross profit reached $1.2 billion, or 45.1% of net sales, compared to 42.9% in the prior year period. Gross margin expanded 221 basis points year over year.

Northcoast Research pointed to several operational initiatives, including the consolidation of multiple ERP systems and the rollout of Zebra handheld devices that streamline inventory receiving at the store level. Previously, store employees spent hours scanning incoming deliveries. With verification now completed at the distribution center, stores can confirm shipments without scanning individual parts, reducing labor demands and improving efficiency.

Northcoast Research maintained its Buy rating on Advance Auto Parts with a $70 price target, citing continued recovery momentum and expectations for additional margin improvement moving forward.