Latest news with #AutoParts
Yahoo
a day ago
- Automotive
- Yahoo
AAP Q2 Deep Dive: Turnaround Initiatives Face Margin Pressure Amid Tariff and Consumer Headwinds
Auto parts and accessories retailer Advance Auto Parts (NYSE:AAP) reported Q2 CY2025 results topping the market's revenue expectations , but sales fell by 7.7% year on year to $2.01 billion. The company expects the full year's revenue to be around $8.5 billion, close to analysts' estimates. Its non-GAAP profit of $0.69 per share was 18.3% above analysts' consensus estimates. Is now the time to buy AAP? Find out in our full research report (it's free). Advance Auto Parts (AAP) Q2 CY2025 Highlights: Revenue: $2.01 billion vs analyst estimates of $1.99 billion (7.7% year-on-year decline, 1% beat) Adjusted EPS: $0.69 vs analyst estimates of $0.58 (18.3% beat) Adjusted EBITDA: $116.3 million vs analyst estimates of $132.3 million (5.8% margin, 12.1% miss) The company reconfirmed its revenue guidance for the full year of $8.5 billion at the midpoint Management lowered its full-year Adjusted EPS guidance to $1.70 at the midpoint, a 15% decrease Operating Margin: 1.1%, down from 2.4% in the same quarter last year Locations: 4,292 at quarter end, down from 4,776 in the same quarter last year Same-Store Sales were flat year on year, in line with the same quarter last year Market Capitalization: $3.40 billion StockStory's Take Advance Auto Parts' Q2 results were met with a strongly negative market reaction, as management attributed the performance to continued margin pressures and a challenging operating environment. CEO Shane O'Kelly noted that while the Pro business showed positive comparable sales growth and DIY sales stabilized, the company is still in the early stages of its turnaround. O'Kelly highlighted, 'We are closely monitoring consumer behavior and the potential for recalibration in purchasing habits, especially within our DIY business.' Management acknowledged ongoing operational challenges, including the impact of tariffs and higher costs, contributing to a cautious outlook for the remainder of the year. Looking forward, Advance Auto Parts' guidance is shaped by a mix of cautious optimism and recognition of persistent risks. Management reconfirmed revenue expectations but lowered adjusted EPS guidance, citing higher interest expense from recent debt restructuring and uncertainty around tariff pass-throughs. CFO Ryan Grimsland emphasized, 'We are planning cautiously in a dynamic macro backdrop and closely monitoring consumer behavior.' The company expects the benefits of its cost-saving and assortment initiatives to materialize gradually, while acknowledging that consumer response to price increases and elasticity remains a significant unknown. Key Insights from Management's Remarks Management attributed Q2's performance to ongoing store optimization, tariff-related pricing actions, and early traction in turnaround programs, with particular strength in the Pro segment and operational efficiencies from supply chain initiatives. Pro business outperformance: The Pro segment delivered positive comparable sales, driven by improved inventory availability and targeted assortment efforts in key hard parts categories. Management credited faster SKU expansion and improved time-to-serve metrics for increased Pro customer confidence. DIY segment stabilization: Although the DIY (do-it-yourself) business recorded a low single-digit sales decline, management observed emerging signs of stabilization. Efforts to improve in-store experience through upgraded facilities and enhanced product training were cited as key focus areas. Tariff management challenges: The company reported that approximately 40% of cost of goods is exposed to tariffs at a blended rate of 30%. Management is responding with selective price increases, active vendor negotiations, and supply diversification, but noted that full consumer impacts are still unfolding. Store footprint and supply chain optimization: Advance Auto Parts continued to close or convert underperforming distribution centers (DCs) and stores, aiming for a leaner supply network. These changes have led to operational efficiencies, such as a 33% reduction in shipment errors and improved fill rates. Debt restructuring for flexibility: The recent $1.95 billion debt offering and establishment of a new asset-backed revolving credit facility were executed to support supply chain financing and preserve liquidity. Management stated this structure is a 'bridge' to regaining investment-grade status and maintaining vendor relationships during the turnaround. Drivers of Future Performance Advance Auto Parts' outlook is shaped by ongoing cost pressures, tariff-related pricing actions, and execution of turnaround initiatives, with margin recovery and consumer demand elasticity as key uncertainties. Tariff pass-through and pricing: Management expects low to mid-single digit inflation from tariffs in the second half, with ongoing efforts to negotiate vendor cost sharing and adjust retail prices. The company remains cautious about the potential impact of higher prices on DIY consumer demand. Assortment and supply chain initiatives: Continued rollout of the new assortment framework and market hub expansions are expected to enhance parts availability and boost comparable sales, especially in the Pro segment. Management believes these initiatives will drive more meaningful benefits over 12 to 18 months as inventory turnover improves. Cost structure and margin targets: The company's path to its 2027 margin goal relies heavily on gross margin expansion through merchandising discipline and supply chain productivity, while maintaining SG&A discipline. Management acknowledged that the pace of margin recovery could be nonlinear, and that macroeconomic headwinds may delay some expected benefits. Catalysts in Upcoming Quarters In upcoming quarters, our analyst team will closely monitor (1) the pace at which tariff-related price increases are absorbed by DIY customers, (2) measurable improvements in gross margin and operating efficiency from supply chain and assortment initiatives, and (3) progress on store upgrades and market hub expansions. The trajectory of Pro segment growth and consumer behavior in response to inflation remain critical variables for ongoing performance. Advance Auto Parts currently trades at $57.25, down from $61.81 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it's free). Now Could Be The Perfect Time To Invest In These Stocks Donald Trump's April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Automotive
- Yahoo
Earnings To Watch: Advance Auto Parts (AAP) Reports Q2 Results Tomorrow
Auto parts and accessories retailer Advance Auto Parts (NYSE:AAP) will be reporting results this Thursday morning. Here's what investors should know. Advance Auto Parts beat analysts' revenue expectations by 3.1% last quarter, reporting revenues of $2.58 billion, down 6.8% year on year. It was a strong quarter for the company, with a beat of analysts' EPS estimates and full-year EPS guidance exceeding analysts' expectations. Is Advance Auto Parts a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Advance Auto Parts's revenue to decline 8.7% year on year to $1.99 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Advance Auto Parts has missed Wall Street's revenue estimates six times over the last two years. Looking at Advance Auto Parts's peers in the auto parts retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Monro delivered year-on-year revenue growth of 2.7%, beating analysts' expectations by 1.7%, and Genuine Parts reported revenues up 3.4%, topping estimates by 0.9%. Monro traded down 13.7% following the results while Genuine Parts was up 8.7%. Read our full analysis of Monro's results here and Genuine Parts's results here. There has been positive sentiment among investors in the auto parts retailer segment, with share prices up 3.7% on average over the last month. Advance Auto Parts is down 4.4% during the same time and is heading into earnings with an average analyst price target of $49.25 (compared to the current share price of $59.29). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Automotive
- Yahoo
Earnings To Watch: Advance Auto Parts (AAP) Reports Q2 Results Tomorrow
Auto parts and accessories retailer Advance Auto Parts (NYSE:AAP) will be reporting results this Thursday morning. Here's what investors should know. Advance Auto Parts beat analysts' revenue expectations by 3.1% last quarter, reporting revenues of $2.58 billion, down 6.8% year on year. It was a strong quarter for the company, with a beat of analysts' EPS estimates and full-year EPS guidance exceeding analysts' expectations. Is Advance Auto Parts a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Advance Auto Parts's revenue to decline 8.7% year on year to $1.99 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Advance Auto Parts has missed Wall Street's revenue estimates six times over the last two years. Looking at Advance Auto Parts's peers in the auto parts retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Monro delivered year-on-year revenue growth of 2.7%, beating analysts' expectations by 1.7%, and Genuine Parts reported revenues up 3.4%, topping estimates by 0.9%. Monro traded down 13.7% following the results while Genuine Parts was up 8.7%. Read our full analysis of Monro's results here and Genuine Parts's results here. There has been positive sentiment among investors in the auto parts retailer segment, with share prices up 3.7% on average over the last month. Advance Auto Parts is down 4.4% during the same time and is heading into earnings with an average analyst price target of $49.25 (compared to the current share price of $59.29). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Motor 1
27-06-2025
- Automotive
- Motor 1
‘I'm On My 4th Exchange:' AutoZone Worker Says Duralast Brake Pads Come With a Lifetime Warranty. But Here's How to Get It
Not all 'lifetime' warranties are created equal. An AutoZone worker says that the chain offers a lifetime warranty on Duralast brake pads that is the real deal. In a viral video with more than 420,000 views, content creator and AutoZone worker Andy ( @amorsum ) reveals how to get a lifetime supply of brakes. Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . In the video, Andy grabs Duralast brake pads, keys his phone number in the system, and then scans the item. He says the policy applies to all brake pads the auto parts chain sells. Sure enough, it says there's a limited lifetime warranty on the brake pads. 'So anytime you get 'em or they are ready to be replaced again, just come back with the same phone number you gave us the first time, and then you'll get your brake pads for basically for free,' Andy says. What's Included in the Limited Lifetime Warranty? A lifetime warranty usually means that the manufacturer will replace a product at any point in that product's life if it fails due to defects in quality or materials. However, Andy claims the brake pad warranty covers you even if they're just worn out from normal wear and tear. Trending Now 'I Listed It For a Fair Price:' Man Lists Jeep on Facebook. Then a Prospective Buyer Brings a Friend Named 'Tommy Roughknuckles' 'It Saved Me Money:' Woman Goes to Discount Tire for New Tires. Then She Pulls Out Her Costco Card According to AutoZone's fine print about the limited lifetime warranty, Andy is right. You can get your brake pads replaced once they wear out, as long as the damage didn't come from an indirect, special, or consequential source, like a bad part causing another part to fail. Driving the vehicle for off-road, commercial, or marine uses will also void the warranty. But in a Reddit forum , a former AutoZone worker said that, even then, it's unlikely that a clerk would check, and if they do, you can appeal it to a manager. An Unprofitable Policy? Buying brake pads once, then getting them replaced for free for the life of the vehicle, is potentially a money-losing policy for AutoZone. But it gets customers back in the store, where they're more likely to make additional purchases. It also encourages customer loyalty. Then there's the fact that most people have had their longest-owned car for eight years, per Nasdaq . Wear and tear on brakes depends on a lot of factors, such as driving style and the conditions you drive in. But most brake pads last 25,000-50,000 miles, as Motor1 has reported. Assuming someone drives the average of 15,000 miles annually, they'll only replace the brake pads a handful of times throughout the life of their car. If you drive a lot of miles, are hard on your vehicle, or keep it longer than eight years, you'll get more out of that lifetime warranty. Then there's the matter of how many people are actually aware of the lifetime warranty and take the necessary steps to utilize it. One person who commented on Andy's post said they have never used it. 'I always just buy new pads.' Some Tips for Using the Warranty Multiple people shared advice for how to utilize AutoZone's limited lifetime warranty. Some suggested keeping the box and making sure you bring the old pads with you. Another person advised people to buy online for discounts and free delivery. 'Quick Fact: Be sure to bring in old brake pads when applying it to warranty. Or be prepared to pay for the new replacement pads. But you will be able to get money back for replacement set once you return old set of pads you are exchanging under warranty,' a top comment reads. One of the simplest pieces of advice was to simply not take no for an answer. 'Lmao I tried this when I first got a car back in 2017 went back to warranty my brakes they said 'you didn't buy brakes with us they aren't on file,'' wrote one person. 'Bruh I keep my receipts for proof now gimme my warranty.' Motor1 reached out to Andy for comment via TikTok direct message and comment. We'll be sure to update this if he responds. More From Motor1 'At AutoZone and O'Reilly's This Is Like $40:' Man Says You Should Buy Your Motor Oil at Walmart. Then He Shows Why 'Do Not Drive:' Ford Issues a Recall for Super Duty Trucks With Bad Brake Pedals 'The Pedal [Could] Shift Out of Position:' Honda Recalls a Quarter-Million Cars Over Faulty Brake Pedals Why Carbon-Ceramic Brakes Are Expensive. And Why They Might Be Worth It Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
Yahoo
13-06-2025
- Automotive
- Yahoo
Auto Parts Inventory Management Software Market Analysis Report 2025-2034
The Auto Parts Inventory Management Software Market is projected to grow from USD 9 billion in 2025 to USD 26.9 billion by 2034, achieving a CAGR of 12.9%. This growth is driven by AI-based automation, real-time data syncing, and rising demands for efficiency in auto part tracking and management systems. Auto Parts Inventory Management Software Market Dublin, June 13, 2025 (GLOBE NEWSWIRE) -- The "Auto Parts Inventory Management Software Market 2025-2034" has been added to offering. The global auto parts inventory management software market is set to experience significant growth, valued at USD 9 billion in 2025 and projected to expand at a CAGR of 12.9% to reach USD 26.9 billion by 2034. These digital solutions are crucial for dealerships, retailers, and repair shops, providing functionalities like stock optimization, waste reduction, automated reordering, and improved supply chain profitability. Throughout 2024, advancements in cloud-based platforms were notable, integrating real-time part availability, dynamic pricing updates, and comprehensive supplier catalogs. Mobile applications enhanced operational efficiency with capabilities such as barcode scanning and parts lookup, while AI-driven demand forecasting addressed issues like overstocking and shortages for high-demand components. Looking towards 2025, software platforms are expected to offer enhanced automation features, such as AI-based procurement and integrating with diagnostic systems for predictive parts ordering. Databases specific to electric and hybrid vehicle parts are anticipated to further support supply chain logistics, despite challenges from legacy systems, data silos, and the fragmented nature of smaller workshops. Market Analytics The market analysis covers direct and indirect factors affecting supply and demand, with meticulous evaluation of the entire supply chain and potential alternatives. Analytical tools, such as Porter's Five Forces model, geopolitical and demographic considerations, provide strategic insights into market developments and future projections. Recent market developments, including geopolitical events and trade policies, have been analyzed for their impacts. Key market metrics also explore trade dynamics, pricing trends, and potential distribution channels, equipping stakeholders with the necessary data for strategic decision-making and future partnerships. Competitive Intelligence The competitive landscape is thoroughly analyzed, profiling key players with insights into their financials, strategies, and market positioning. Noteworthy updates like product launches, mergers, and partnerships are considered to help businesses remain competitive. Key Insights into the Market Real-time inventory data syncing with sales and service platforms. AI-driven tools for procurement and demand forecasting. Proactive parts ordering through vehicle diagnostics integration. Introduction of databases for electric and hybrid vehicles. Challenges in smaller workshops due to fragmented data. Market Segmentation By Type: Software By Application: Vehicle Dealerships Fleet Management Tire Distributors Car Rental Companies E-commerce Platform By End-Users: Automotive Aftermarket Original Equipment Manufacturers (OEMs) By Geography: North America Europe Asia-Pacific The Middle East and Africa South and Central America Takeaways From the Report Forecasted market size and CAGR to 2034. Assessment of geopolitical and economic influences on supply and demand. In-depth market evaluations by regions and applications. Porter's Five Forces analysis and technology impact. Competitive profiles of leading companies and their strategic initiatives. Key Attributes: Report Attribute Details No. of Pages 150 Forecast Period 2025 - 2034 Estimated Market Value (USD) in 2025 $9 Billion Forecasted Market Value (USD) by 2034 $26.9 Billion Compound Annual Growth Rate 12.9% Regions Covered Global Companies Featured SAP SE Infor Inc. Epicor Software Corporation Hubworks LLC Windward Software Carrus Technologies Inc Wasp Barcode Technologies Motility Software Solutions LLC Fuse5 Automotive Software ADS Solutions Corp Fishbowl System Nexgen Acumatica Inc. Rarestep Inc Alterity Inc AutoPower Corporation Finale Inventory FleetSoft LLC Amador of America Inc Eagle Business Accounting Software MAM Software Group Inc Sortly Inc RazorERP Checkmate by Car-Part For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Auto Parts Inventory Management Software Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
