Advance Auto Parts, Inc. (AAP)

The past six months have seen several events impacting Advance Auto Parts' stock price. In April 2025, the stock hit a 52-week low of $33.05 amidst a challenging market environment, and the company announced the retirement of Executive Vice President Herman L. Word, Jr. In May 2025, the stock gained significantly (53.2%) following impressive first-quarter 2025 results that surpassed analysts' sales and EPS expectations, despite store optimization efforts. The company reported its second-quarter 2025 financial results on August 14, 2025, showing a decline in sales and earnings but a slight increase in comparable store sales of 0.1%, and reaffirmed its full-year sales, operating margin, and free cash flow guidance. In October 2025, the stock saw a jump of 5.5% after a key competitor, Genuine Parts Company, reported positive sales figures, boosting sentiment for the auto parts retail sector. The company is scheduled to report its third-quarter 2025 financial results on October 30, 2025. Insider trading activity was also reported in October 2025, with directors Carla J. Bailo and John F. Ferraro acquiring shares through a dividend reinvestment feature.

Demand for Advance Auto Parts' products and services can be influenced by various factors, including weather and economic conditions. The company's Q2 2025 earnings call indicated that sales growth was strongest in the latter part of the quarter, with both DIY and professional channels experiencing positive comparable sales, following an earlier period of softer transaction growth attributed to higher-than-normal precipitation levels. A report from January 2025 highlighted that the motor vehicle and parts dealers industry experienced a net expansion in November 2024, potentially driven by high interest rates on new car loans and new car prices, which encourage consumers to maintain their existing vehicles, thereby increasing demand for aftermarket parts.

Advance Auto Parts, Inc. is an American provider of automotive aftermarket parts, serving both professional installers and do-it-yourself (DIY) customers, operating within the Auto Parts Retail industry and the broader Automotive and Specialty Retail sectors. Its major products include a wide range of brand-name, original equipment manufacturer (OEM), and private-label automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks, offered under its own brand and through its Carquest brand.

Advance Auto Parts operates extensively across North America, with a presence in the United States, Canada, Puerto Rico, and the U.S. Virgin Islands. As of July 12, 2025, the company operated 4,292 stores, with an additional 842 independently owned Carquest branded stores across these regions, as well as in Mexico and various Caribbean islands. In a strategic restructuring, Advance Auto Parts announced in November 2024 plans to close 523 corporate stores, 204 independent locations, and four distribution centers. By March 2025, all 138 of its California stores and distribution centers were closed.

Advance Auto Parts has shown signs of improving brand perception in the past year, with its "Heat Score" rising to 74, placing it comfortably within the "Buy" zone, and the American Customer Satisfaction Index now ranks AAP solidly. In January 2025, Advance Auto Parts named Valvoline™ Global its 2024 Vendor Partner of the Year, indicating strong relationships with its suppliers. The company is also a sponsor of the NASCAR Advance Auto Parts Weekly Series in 2025, which provides brand visibility through grassroots racing events. While the company undertook significant store and distribution center closures announced in late 2024 and early 2025, which could potentially impact local perceptions, the overall customer sentiment appears to be improving.

Advance Auto Parts' shares are primarily held by institutional investors, including BlackRock, Inc., The Vanguard Group Inc, Price T Rowe Associates Inc /md/, Pzena Investment Management Llc, State Street Corp, Federated Hermes Inc, Fuller & Thaler Asset Management Inc, and Dimensional Fund Advisors LP. Individual owners with significant stakes include Nicholas F. Taubman, Jeffrey C. Smith, Carla J. Bailo, and John F. Ferraro. As of October 2025, institutional shareholders hold 90.28% of the stock, while insiders hold 9.72%.