Advance Auto Parts Returns to Profit in Q2

Advance Auto Parts(NYSE:AAP) reported second-quarter 2025 results on Aug. 14, 2025, with GAAP net sales of $2 billion, down 8% year-over-year, and adjusted earnings per share (EPS) of $0.69. The company returned to profitability, reaffirmed its full-year sales, operating margin, and free cash flow guidance, and tightened its adjusted EPS outlook due to higher interest expense from a $1.95 billion debt offering. The following highlights focus on cost management, capital structure, and transformation progress.Gross margin from continuing operations expanded by 16 basis points year-over-year to 43.8%, supported by store optimization and ongoing cost reduction initiatives. Tariffs now affect about 40% of cost of goods sold at a blended rate of 30%, increasing the importance of disciplined pricing and vendor negotiations.Advance Auto Parts’ ability to identify tariff exposures, negotiate with vendors, and diversify sourcing is helping to offset inflationary pressures and support sustainable margin improvement despite a challenging macro environment.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool