ROANOKE, Va. — Advance Auto Parts has reported earnings per diluted share (EPS) of $1.19 for the first quarter ended April 24. This was a 21 percent increase over the first quarter last year. Excluding the 4 cent charge related to store divestitures recorded during the first quarter of fiscal 2009, EPS increased 17 percent.
“The team has positioned us for another great year of sales and profit growth through an unwavering commitment to provide a superior experience to our customers,” said Darren Jackson, CEO. “During the quarter we generated double-digit operating income growth and saw continued improvement in our overall customer satisfaction scores. Collectively, the strategic and financial progress is evident in our customer experience and financial results.”
Total sales for the first quarter increased 8.7 percent to $1.83 billion, compared with total sales of $1.68 billion during the first quarter of fiscal 2009. The sales increase reflected the net addition of 57 new stores during the past 12 months and a comparable store sales gain of 7.7 percent compared to an 8.2 percent comparable store sales gain during the first quarter of fiscal 2009.
The company’s gross profit rate was 49.8 percent of sales during the first quarter as compared to 48.8 percent during the first quarter last year. The 93 basis-point improvement in the gross profit rate was driven by continued investments in pricing capabilities, parts availability and an increase in direct sourcing.
“We are very pleased with our strong start to 2010 and the broad-based improvements in our business. During our fourth quarter fiscal 2009 earnings release, we provided an annual outlook which included an estimated 2010 operating EPS range of $3.20 to $3.40 per share. This annual outlook was based on operating performance only and did not include share repurchases or the impact of the recent notes offering. The favorable impact of our share repurchases, partially offset by the recent notes offering, will add a net incremental benefit of approximately $0.14 to our full year EPS of which we realized 4 cents in our first quarter results,” said Mike Norona, executive vice president and CFO. “In April, we were upgraded to investment grade status by Standard & Poor’s. This was an important milestone for our company as this upgrade is an independent assessment validating our strong operational and financial performance, solid operating cash flows, and strong financial metrics.”
In other news, the company held its annual meeting of stockholders on May 19. During the meeting, the following individuals were elected to serve on the company’s board of directors for the next year: John Bergstrom, John Brouillard, Fiona Dias, Frances Frei, Darren Jackson, William Oglesby, J. Paul Raines, Gilbert Ray, Carlos Saladrigas and Francesca Spinelli.
