Advance Auto Parts Inc ( AAP ).shares are trading lower on Thursday in the premarket session.

The company reported second-quarter adjusted earnings per share of 69 cents, beating analysts’ consensus estimate of 57 cents. Quarterly sales of $2.01 billion outpaced the Street view of $1.978 billion.

Comparable store sales for the second quarter increased 0.1%.

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“Our comparable sales performance was fueled by growth in the Pro business, and we are encouraged by the early signs of stabilization in our DIY business,” said Shane O’Kelly, president and chief executive officer. 

Adjusted gross profit was $0.9 billion, down from $1.0 billion in the prior-year quarter. Gross margin was 43.8%, slightly above last year's 43.6%.

Margin expansion was driven by savings associated with footprint optimization activity completed in March.

These savings were partially offset by the reversal of previously capitalized inventory costs.

Adjusted operating income was $61 million, compared to $62 million in the same quarter of 2024. Operating margin was 3.0%, up from 2.8% a year ago.

The company exited the quarter with cash and equivalents worth $1.657 billion.

The company entered a new $1.0 billion asset-backed revolving credit facility. This replaces its previous credit facility.

Dividend

On August 5, the company declared a regular cash dividend of 25 cents per share, payable on October 24.

Outlook

Advance Auto Parts ( AAP ) cut its FY25 adjusted EPS outlook to $1.20–$2.20 from $1.50–$2.50, compared with the $1.80 consensus.

The company reaffirmed its FY25 sales guidance of $8.40 billion to $8.60 billion, compared with the $8.522 billion estimate.

Price Action: AAP shares are trading lower by 2.77% to $60.10 premarket at last check on Thursday.

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