Advance Auto Parts has announced its financial results for the first quarter ended April 23, 2022. During the quarter, net sales increased 1.3% to $3.4 billion. The company said this was driven primarily by year over year growth in its professional and independent businesses.  

Gross profit increased 1.5% to $1.5 billion; and adjusted gross profit increased 6.6% to $1.6 billion. Operating income decreased 19.4% to $203.3 million. During the quarter, Advance returned $403 million to shareholders through a combination of share repurchases and cash dividends, and opened 35 new stores.

“In the first quarter of 2022, we delivered our eighth consecutive quarter of comparable store sales, adjusted operating income and adjusted earnings per share growth,” said Tom Greco, president and CEO. “We started 2022 with strong mid-single digit comp growth through the first 10 weeks of our 16-week quarter. During the final six weeks, we experienced comp declines driven by our DIY omnichannel business. This was primarily a result of headwinds from the expected lap of the DIY sales boost from the 2021 stimulus as well as a slower start to the spring selling season due to cooler temperatures and higher precipitation. These headwinds have subsided during the first four weeks of our second quarter with comparable sales growth within our full-year guidance range.

“We believe the investments we’ve made in the company, our team members as well as our supplier partners are enabling us to capitalize on emerging opportunities while staying focused on the disciplined execution of our long-term strategic plan. Consistent with this, we continue to build and strengthen a differentiated customer offering behind improved parts availability, industry leading innovation and an enhanced online and in-store experience. This includes today’s announcement that Advance Auto Parts is the first to market with our exclusive DieHard EV battery for hybrid and battery electric vehicles. This innovative 12-volt battery will provide improved and longer-lasting battery performance for the increasing power demands of hybrid and electric vehicles.

“We also returned over $400 million of cash to shareholders in the quarter through a combination of cash dividends and share repurchases. Consistent with our balanced approach to returning cash to shareholders, our Board also approved a quarterly cash dividend of $1.50 per share. We believe we’re well positioned to execute our strategic initiatives throughout the balance of 2022 to deliver profitable growth and top-quartile total shareholder returns over the long-term.”

Full Year 2022 Guidance

“We continue to execute against our long-term plans, despite volatility within the broader macro environment,” said Jeff Shepherd, executive vice president and CFO. “Based on our Q1 results and 2022 outlook, we’re reaffirming our 2022 guidance including comparable store sales growth, adjusted operating margin expansion and double-digit adjusted earnings per share growth. Importantly, we’re slightly increasing our Adjusted diluted EPS guidance range reflecting year to date share repurchases.”