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Advance Auto Parts' Net Sales Soar Amid 'Strong Industry Backdrop'

Advance Auto Parts’ Net Sales Soar Amid ‘Strong Industry Backdrop’

June 02, 2021 at 03:46PM
by PYMNTS

Advance Auto Parts reported as part of its first quarter 2021 results that net sales surged by about 23 percent from the prior year, while comparable store sales soared by about 25 percent.

“In the first quarter of 2021, we delivered record-breaking sales growth across our business, as both DIY and professional customers turned to Advance for their automotive needs amid a strong industry backdrop,” President and CEO Tom Greco said in a Wednesday (June 2) announcement.

The auto parts company, which has professional installer and do-it-yourself customers, reported that adjusted selling, general and administrative expenses (SG&A) improved by 387 basis points from last year to approximately 36 percent of net sales.

It also reported an adjusted gross profit margin of approximately 45 percent of net sales, marking a 91 basis point rise from last year.

Advance Auto Parts had an approximately 25 percent effective tax rate in the quarter, marking a decrease from approximately 28 percent in the prior year.

As for its overall results, Advance Auto Parts posted $3.34 in adjusted diluted earnings per share (EPS) for the quarter, marking a 234 percent jump from last year.

“We continue to see top-line sales strength in the early weeks of the second quarter of 2021,” Executive Vice President and CFO Jeff Shepherd said in the announcement. “Through the first four weeks of Q2, our comp sales continue to trend in the mid-teens and on a two-year stack are comparable with our Q1 2021 increase of 15.4 percent.”

Advance ran approximately 4,800 brick-and-mortar locations and approximately 180 Worldpac branches in the United States, Puerto Rico, Canada and the U.S. Virgin Islands as of April 24. Moreover, the firm serves approximately 1,300 independently owned Carquest branded stores.

The news comes as Advance Auto Parts announced in April that it forecast comparable-store sales growth to range from 22 percent to 24 percent for the first quarter. “We continue to see strong demand from both DIY omnichannel and professional customers, with robust sales growth to start 2021,” Greco said at the time.