Advance Auto Parts reported its fourth quarter and full-year 2024 financial results, reflecting a year of restructuring and strategic realignment. The company focused on repositioning itself for long-term success by divesting non-core assets, closing non-strategic stores, and optimizing its supply chain. Leadership changes and enhanced frontline support were also part of these initiatives.

For the fourth quarter of 2024, net sales reached $2.0 billion, a 0.9% decline from the previous year, with comparable store sales down 1.0%. Gross profit was $347.1 million or 17.4% of net sales, while adjusted gross profit stood at $778.6 million or 39.0%. The operating loss was $820.0 million, primarily due to restructuring costs, with an adjusted operating loss of $99.4 million. The diluted loss per share was $10.16, with an adjusted diluted loss per share of $1.18.

For the full year 2024, net sales totaled $9.1 billion, a 1.2% decrease from 2023. Comparable store sales declined by 0.7%. Gross profit was $3.4 billion or 37.5% of net sales, while adjusted gross profit reached $3.8 billion or 42.2%. The operating loss for the year was $713.3 million, with an adjusted operating income of $35.2 million. The full-year diluted loss per share was $9.80, with an adjusted diluted loss per share of $0.29. Free cash flow resulted in an outflow of $40.3 million, an improvement from the previous year’s $83.9 million outflow.

The company outlined its strategic priorities for 2025-2027, focusing on merchandising excellence, supply chain improvements, and store operations standardization. Plans include consolidating distribution centers, opening 60 market hubs, and accelerating new store openings. For 2025, the company forecasts net sales between $8.4 billion and $8.6 billion, comparable store sales growth of 0.5% to 1.5%, adjusted operating income margin of 2.0% to 3.0%, and adjusted diluted EPS between $1.50 and $2.50.

First-quarter 2025 expectations include net sales of approximately $2.5 billion, a 2% decline in comparable store sales, and an adjusted operating income margin of approximately -2.0%. The company aims to reach $9 billion in net sales and a 7.0% adjusted operating margin by 2027.

Advance Auto Parts continues its restructuring efforts, including closing around 500 stores, 200 independent locations, and four distribution centers by mid-2025. The company also finalized the sale of its Worldpac business, which contributed to its net income from discontinued operations. Liquidity remains strong, with $1.9 billion in cash and cash equivalents at year-end.

An investor conference call is scheduled for February 26, 2025, at 8 a.m. Eastern Time to discuss the financial results and strategic plans.