Advance Auto Parts Crashes 25% as DIY Weakness Hits Q2
AAP is trading near its 52-week low of $37.89 (12% above the low) on elevated volume (7.9× avg).
Summary
Advance Auto Parts reported Q2 adjusted EPS of $1.03, beating the $0.81 consensus, but sales of $2.00B missed the $2.039B estimate. The stock crashed 25% on Thursday, closing at $42.39, as weak DIY demand and a 0.5% decline in comparable sales spooked investors. The company raised full-year adjusted EPS guidance to $2.60-$3.30 from $2.40-$3.10, but the midpoint of $2.95 remains below the $2.92 consensus. A $26 million Trump tariff refund boosted Q2 margins, and the SKU catalog expanded. The market's violent reaction included a 25% single-day drop and a modest 0.59% premarket bounce on Friday.
At the time of this announcement, AAP was trading at $42.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $2.6B. The 52-week trading range was $37.89 to $65.21. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.