Advance Auto Parts posts strong Q1 with EPS $0.77, signals solid turnaround progress

Advance Auto Parts reported strong first-quarter results with earnings per share (EPS) of $0.77 and a 3.5% increase in same-store sales, indicating clear progress in its turnaround efforts. The company improved its gross margin by 130 basis points to 45.1% and expanded operating margin by 410 basis points to 3.8%, driven by effective merchandising and cost control. Despite this strong performance, Advance Auto Parts maintained a conservative full-year guidance with expected EPS between $2.40 and $3.10 and same-store sales growth of 1% to 2%. The stock has been range-bound between $50 and $60, reflecting cautious investor sentiment amid ongoing execution and macroeconomic risks.