Advance Auto Parts Inc. · NYSE:AAP
Advance Auto Parts — Q1 2026 Earnings Presentation
19 slides from Advance Auto Parts's earnings presentation, May 21, 2026
Slide 1: Q1 2026 Results
Q1 2026 RESULTS MAY 21 | 2026
Slide 2: Forward Looking Statements and Non-GAAP
Forward Looking Statements and Non -GAAP Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,”
Slide 3: Agenda
Business Update Shane O’Kelly President and Chief Executive Officer Financial Update AGENDA Ryan Grimsland Executive Vice President and Chief Financial Officer Q&A 3
Slide 4: Business Update
BUSINESS UPDATE Shane O’Kelly 4 4
Slide 5: Q1 2026 Summary
Q1 2026 SUMMARY Strong Start to FY26. FY 2026 Guidance Reaffirmed Priorities On Track 5
Slide 6: Key 2026 Priorities
KEY 2026 Merchandising Store PRIORITIES Excellence Operations ▪ Strategic sourcing ▪ Elevate team- and vendor Supply member experience partnerships Chain ▪ Improve DIY/ PRO ▪ New pricing service standards ▪ Completion of framework distribution center ▪ Strengthen in-store consolidation ▪ Assortment
Slide 7: Progress Update
PROGRESS UPDATE ▪ Strengthening vendor relationships Merchandising ▪ Elevating store front room experience Excellence ▪ Argos brand launch meeting expectations ▪ Advance Rewards driving higher engagement ▪ Key process improvements being rolled out Supply through the year Chain ▪ Productivity initiat
Slide 8: Financial Update
FINANCIAL UPDATE Ryan Grimsland UPDATE IMAGE 8 8
Slide 9: Q1 2026 Results
Q1 2026 RESULTS Comparable Store Adjusted Diluted Net Net Sales Sales Growth Earnings Per Share Leverage Ratio $2.6B 3.5% YoY $0.77 2.4x (+1.2% YoY) TTM Adj. Net Debt/ Adj. EBITDAR Adjusted Adjusted Adjusted Operating Gross Margin SG&A Margin Income Margin 45.1% 41.3% 3.8% (+213 bps YoY) (-197 bps Y
Slide 10: FY 2026 Guidance Summary
FY 2026 GUIDANCE SUMMARY ($ in million, except margins and per share data) Current - As of May 21, 2026 Net sales $8,485 - $8,575 Comparable store sales growth 1.0% - 2.0% Adjusted operating income margin 3.8% - 4.5% Adjusted diluted EPS (1) $2.40 - $3.10 Capital expenditures Approx. $300 Free cash
Slide 11: Q&A
Q&A 11
Slide 12: Appendix
APPENDIX 12
Slide 13: FY 2026 Net Sales Guidance
FY 2026 NET SALES GUIDANCE (1.3%) - (0.3%) YoY $8,601 1.0% - 2.0% $8,485 - $8,575 ($51) (0.2%) – (0.1%) $8,418 ($132) FY25 Less: Q1 FY25 Less: Q4 FY25 FY25 Add: FY26E Less: FY26E FY26E Liquidation Extra week Normalized Comparable Other Guidance sales sales Sales Base sales growth The Company is not
Slide 14: FY 2026 Adj. Operating Margin Guidance
FY 2026 ADJ. OPERATING MARGIN GUIDANCE Key Drivers 0.0% – 0.3% 3.8% - 4.5% ▪ Gross Margin 0.2% – Tailwinds – Product costs. Pricing 0.9% - 1.3% & promotions. – Headwinds – Supply chain 0.2% - 0.5% investments and labor inflation. 0.2% 2.5% FY26E SG&A Margin ▪ SG&A Leverage – Lower expenses YoY. Incl
Slide 15: Strategic Pillars and Key Initiatives
STRATEGIC PILLARS AND KEY INITIATIVES Right Right Right Part. Place. Service. Merchandising Supply Store Excellence Chain Operations Distribution center Store Strategic sourcing productivity operating model Assortment Hub network Service-level management expansion improvements Promotions & margin Tr
Slide 16: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON -GAAP FINANCIAL MEASURES The Company uses certain Non-GAAP financial measures described below to supplement the Company's unaudited condensed consolidated financial statements prepared and presented in accordance with GAAP and to understand and evaluate the Company's core opera
Slide 17: Reconciliation of GAAP Results to Non-GAAP Results
RECONCILIATION OF GAAP RESULTS TO NON -GAAP RESULTS (1) These GAAP and Non-GAAP measures are calculated as a percentage of net sales. (2) Restructuring and other related expenses includes $13 million for reserves on independent loans and $4 million of other related expenses associated with location
Slide 18: Reconciliation of GAAP Results to Non-GAAP Results
RECONCILIATION OF GAAP RESULTS TO NON -GAAP RESULTS (1) These GAAP and Non-GAAP measures are calculated as a percentage of net sales. (2) Non-GAAP diluted weighted-average common shares outstanding excludes 0.4 million of anti-dilutive share-based awards. Details of Non-GAAP adjustment amounts inclu
Slide 19: Reconciliation of Free Cash Flow
RECONCILIATION OF FREE CASH FLOW (1) The sixteen weeks ended April 25, 2026, and April 19, 2025, included approximately $6 million and $90 million, respectively, of cash charges related to restructuring and other related expenses under our 2024 Restructuring Plan. (1) RECONCILIATION OF ADJUSTED NET