Advance Auto Parts Reports $8.6 Billion in Net Sales, 5.4% Decline for Fiscal Year Ending January 3, 2026

Advance Auto Parts, Inc. reported its financial results for the fiscal year ending January 3, 2026, revealing a net sales figure of $8.6 billion, a decrease of 5.4% compared to the previous fiscal year. This decline was attributed to store closures as part of the company's 2024 Restructuring Plan, although the impact was partially offset by an additional week of operations in the current fiscal year. The company did see a 0.8% increase in comparable store sales, indicating some resilience in its core business despite the overall revenue drop. Gross profit margin improved significantly to 43.4%, up 592 basis points from the prior year, primarily due to reduced inventory-related charges.

The restructuring plan, which included the closure of approximately 500 stores and 200 independent locations, was completed in the first quarter of 2025. This strategic shift aimed to streamline operations and enhance profitability. The company incurred $204 million in restructuring expenses during fiscal 2025, a decrease from $309 million in the previous year, reflecting the completion of many associated costs. The operating loss from continuing operations was reported at $43 million, a substantial improvement of $670 million compared to the previous year, largely due to lower restructuring expenses.

Operationally, Advance Auto Parts maintained a workforce of approximately 28,274 full-time and 25,733 part-time employees as of January 3, 2026. The company operated 4,305 stores across the U.S., Canada, Puerto Rico, and the U.S. Virgin Islands, down from 4,788 stores the previous year. The company also serves 809 independently owned Carquest stores, which are included in its overall store count. The strategic focus on enhancing its supply chain and distribution network is expected to improve service levels and inventory availability, with ongoing investments in technology and infrastructure.

Looking ahead, Advance Auto Parts anticipates continued challenges from macroeconomic factors, including inflation and global trade tariffs, which may impact product costs and consumer spending. The company has expressed confidence in its long-term growth prospects, supported by its strategic initiatives aimed at improving customer experience and operational efficiency. The management remains committed to executing its multi-year strategic plan, which includes optimizing its asset footprint and enhancing its product offerings to better meet customer needs.