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Advance Auto Parts’ Pivotal Supply-Chain Reset — From Nearly 40 Centers To 15!

Advance Auto Parts reported mixed second-quarter 2026 results amid constrained consumer spending and variable weather conditions. Net sales reached $2 billion, with comparable sales declining slightly due primarily to weakness in the Do-It-Yourself channel. DIY softness intensified in the final month as tighter household budgets reduced demand, particularly for larger-ticket repairs. The Professional channel delivered low single-digit growth, led by Main Street Pro, which outpaced overall Pro growth and supported market share gains. Adjusted gross margin expanded approximately 240 basis points year-over-year to 46.2%, including a 130-basis-point benefit from tariff refunds. Additional improvement came from stronger product margins, partly offset by unfavorable channel mix from DIY weakness and higher freight and fuel costs. Adjusted SG&A declined 1% year-over-year to 40.6% of sales, reflecting store task simplification and resource management. Adjusted operating margin increased approximately 260 basis points to 5.6%, while adjusted EPS rose to $1.03 from $0.69.