Aftermarket retailer Advance Auto Parts has announced record revenue and earnings for its first quarter ended April 23.
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Earnings per diluted share for the first quarter were $US0.94, a 38% increase compared to earnings per diluted share of $0.68 for the first quarter last year.
Net sales increased 12.1% in the quarter to $1.26 billion compared to $1.12 billion in the first quarter last year. Same-store sales grew 9.2% in the quarter, comprised of 5.1% do-it-yourself (DIY) same-store sales and 27.2% do-it-for-me (DIFM) same-store sales.
First quarter gross margin improved to 47.8% of net sales, compared to 46.4% in the same quarter last year, primarily reflecting the positive impact of a more-favourable mix of higher-margin categories, as well as the impact of category management and supply-chain initiatives.
Selling, general and administrative (SG&A) expenses improved to 38.2% of net sales, compared to 38.4% in the first quarter last year, primarily due to higher same-store sales.
First quarter operating margin rose to 9.6% of net sales compared to 8.0% in the first quarter last year.
During the first quarter, the Company opened 26 new stores, closed three, relocated 19, and converted 68 stores to its ‘2010’ format. 150-175 new stores are planned for 2005.
Advance has raised its earnings per diluted share guidance for fiscal 2005 to a range of $3.04 to $3.14, an increase of 22% to 26% over fiscal 2004. For the second quarter, it is reiterating its guidance in the range of $0.82 to $0.88, up 17% to 26%. For the third quarter, earnings in the range of $0.78 to $0.83 a share, up 15% to 22%, are expected.
