Advance Auto Parts has announced its financial results for the fourth quarter and full year ended Dec. 29, 2018.
“I am proud to report another quarter of comp sales and adjusted operating income growth as we concluded the second year of our transformation agenda with consistent, balanced improvement in nearly every metric. The dedication of our entire team is evident as they focused on delighting the customer and growing the top-line while remaining disciplined in controlling costs to deliver margin expansion. We are pleased with the continuous progress throughout 2018 versus our long-term strategic objectives and remain committed to further strengthening our customer value proposition to capitalize on the substantial opportunity still ahead for Advance,” said President and CEO Tom Greco.
Net sales for the fourth quarter 2018 were $2.1 billion, a 3.3 percent increase versus the fourth quarter of the prior year. Comparable store sales for the fourth quarter 2018 increased 3.4 percent. For the full year 2018, net sales were $9.6 billion, an increase of 2.2 percent from the full year 2017. Comparable store sales for the full year 2018 increased 2.3 percent.
The company’s adjusted operating income was $127.1 million in the fourth quarter 2018, an increase of 11.7 percent versus the fourth quarter of the prior year. Adjusted operating income margin improved to 6 percent of net sales for the fourth quarter 2018, an increase of 45 basis points compared to the fourth quarter of the prior year. On a GAAP basis, the company’s operating income was $84.3 million, a decrease of 3.3 percent compared to the fourth quarter of the prior year.
For full year 2018, adjusted operating income was $750.2 million, an increase of 9.3 percent from the full year 2017. Adjusted operating income margin for the full year 2018 improved to 7.8 percent of net sales, an increase of 51 basis points compared to the full year 2017. The company’s full year 2018 GAAP operating income was $604.3 million, 6.3 percent of net sales, an increase of 22 basis points compared to the full year 2017.
