Advance Auto Parts reported third quarter 2026 results characterized by an adjusted EPS beat and raised free cash flow guidance, even as comparable store sales and total revenue fell short of analyst estimates. Management noted that performance improved sequentially during the quarter, with transaction volumes turning positive in the final four weeks as strategic initiatives gained traction.
Key Highlights
- Comparable store sales declined 1.2% for the quarter, missing the 0.2% growth estimate, though performance recovered from mid-single-digit declines earlier in the summer.
- Professional channel sales grew in the low-single-digit range, while the DIY channel experienced a low-single-digit decline during the period.
- Adjusted operating margin expanded to 4.5% from 4.4% in the prior year, driven by disciplined selling, general, and administrative expense management.
- The company raised its full year 2026 free cash flow guidance to approximately $150 million, up from the previous estimate of $100 million.