Advance Auto Parts, Inc. a leading automotive aftermarket parts provider in North America, that serves both professional installer and do-it-yourself customers, announced its financial results for the second quarter ended July 18, 2026.

“During the second quarter, the Advance team maintained focus on executing our strategic initiatives to achieve solid profitability, while navigating a volatile demand environment and I thank the team for their hard work and commitment to serving our customers,” said Shane O’Kelly, president and chief executive officer.

Advance operates 4,311 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 786 independently owned Carquest branded stores across these locations in addition to various Caribbean islands

“Our second quarter comparable sales results reflected low-single-digit growth in the Pro channel, which performed in line with expectations along with Main Street Pro trends outpacing overall Pro trends,” continued O’Kelly.

“However, total enterprise sales performance was impacted by the DIY channel as tighter household budgets constrained spending more than we anticipated, especially during the last four weeks of the quarter. “

U.S. retailers across many sectors have reported the impact of tightening household budgets.

Notably, Home Depot and Lowes both reported a pullback as consumers took on smaller projects.

“The focus on executing our initiatives helped Advance achieve a significant milestone with the return to positive year to date free cash flow, following two years of outflows. We view this as an important proof point in our strategic journey as we work to create long-term value for our shareholders.”

Second Quarter 2026 Results

Second quarter 2026 net sales totaled $2.0 billion, compared with $2.0 billion in the second quarter of the prior year. Comparable store sales for the second quarter 2026 decreased 0.5%.

The Company’s second quarter 2026 gross profit was $0.9 billion, or 46.2% of net sales compared with $0.9 billion, or 43.5% in the second quarter of 2025.

Adjusted gross profit was $0.9 billion, or 46.2% of net sales in the second quarter of 2026 compared with $0.9 billion, or 43.8% in the second quarter of 2025.

Second quarter 2026 adjusted gross profit included $26 million in refunds related to tariffs that were previously paid under the International Emergency Economic Powers Act (IEEPA). Excluding these refunds, the increase in gross profit as a percentage of net sales compared to the second quarter of 2025 was primarily driven by expansion in product margin supported by merchandising initiatives.

The Company’s second quarter 2026 selling, general and administrative (SG&A) expenses were $0.8 billion, or 41.1% of net sales compared with $0.9 billion, or 42.4% of net sales in the second quarter of 2025. Adjusted SG&A expenses were $0.8 billion, or 40.6% of net sales in the second quarter of 2026 compared with $0.8 billion, or 40.7% of net sales in the second quarter of 2025.

The Company’s second quarter 2026 operating income was $101 million, or 5.1% of net sales, compared with $22 million, or 1.1% of net sales in the second quarter of 2025. Adjusted operating income was $112 million or 5.6% of net sales in the second quarter of 2026, compared with $61 million or 3.0% of net sales in the second quarter of 2025.

The Company’s second quarter 2026 diluted earnings per share was $0.90, compared with $0.25 in the second quarter of 2025. Adjusted diluted earnings per share was $1.03 in the second quarter of 2026, compared with $0.69 in the second quarter of 2025.

Tariff refunds contributed approximately $0.31 to second quarter 2026 adjusted diluted earnings per share.

Full Year 2026 Guidance

The Company has reaffirmed its full year 2026 guidance for net sales, comparable store sales, adjusted operating income margin, capital expenditures and free cash flow. Adjusted diluted EPS guidance has been revised to reflect higher pre-tax interest income.

Full year guidance considers performance through the first half of 2026 including the receipt of tariff refunds and revised operating expectations for the second half of 2026. Additionally, the Company has revised its new store and market hub opening schedule for the year.

Investor Conference Call

The Company will detail its results for the second quarter and full year 2026 via a webcast scheduled to begin at 8 a.m. Eastern Time on Thursday, August 20, 2026. The webcast will be accessible via the Investor Relations page of the Company’s website (ir.AdvanceAutoParts.com).

To join by phone, please pre-register online for dial-in and passcode information. Upon registering, participants will receive a confirmation with call details and a registrant ID. While registration is open through the live call, the Company suggests registering a minimum 10 minutes before the start of the call. A replay of the conference call will be available on the Company’s Investor Relations website for one year.