Why are Advance Auto Parts (AAP) shares on the rise?

Shares of Advance Auto Parts ( NYSE:AAP) are on the rise today after the automotive aftermarket parts provider reported first-quarter results and issued a somewhat optimistic financial outlook. During the quarter, AAP’s top line remained largely flat at $3.41 billion. The figure lagged expectations by a narrow margin of $20 million.

How has Aap changed in 2024?

Additionally, AAP has lowered its store count to 5,097 from 5,107 at the end of December 2023. Next, AAP is focusing on improving its supply chain and lowering its cost structure. For Fiscal year 2024, the company anticipates an EPS of $3.75-$4.25 on net sales of $11.3-$11.5 billion.

Why did AAP's sales decline 2%?

The broader automotive industry is facing challenging times at present. As a result, AAP’s comparable store sales declined by 2%, and its gross margin contracted by 82 basis points to 42% due to higher costs.