AAPHIGH SIGNALFINANCIAL10-K

AAP's operating losses decreased substantially while the company significantly increased both debt and cash positions, suggesting major balance sheet restructuring.

The dramatic improvement in operating performance from massive losses to much smaller losses indicates either successful turnaround efforts or one-time charges in the prior period that have been resolved. However, the near-doubling of debt alongside increased cash suggests the company may have taken on significant financing, possibly for strategic initiatives or to strengthen liquidity during operational challenges.

Comparing 2026-02-13 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

AAP showed meaningful operational improvement with operating losses substantially reduced from the prior year's massive deficit. The balance sheet reflects major capital structure changes, with debt levels nearly doubling to $3.4B while cash reserves grew meaningfully to $3.1B, indicating significant financing activity. Current liabilities decreased modestly while the company reduced share buybacks and increased capital expenditures, suggesting a focus on operational investment over shareholder returns.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
+94%
-$713.3M→-$43.0M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Total Debt
Balance Sheet
+90.7%
$1.8B→$3.4B

Debt increased 90.7% — substantial leverage increase; assess whether deployed for growth or covering losses.

Cash & Equivalents
Balance Sheet
+67.1%
$1.9B→$3.1B

Cash position surged 67.1% — strong cash generation or capital raise providing significant financial cushion.

Share Buybacks
Cash Flow
-55.2%
$14.5M→$6.5M

Buyback activity reduced 55.2% — capital being redeployed elsewhere or cash conservation underway.

Capital Expenditure
Cash Flow
+39.4%
$180.8M→$252.0M

Capital expenditure jumped 39.4% — major investment cycle underway; assess returns on deployment.

Accounts Receivable
Balance Sheet
-30.2%
$544.0M→$380.0M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Current Assets
Balance Sheet
+18.7%
$6.1B→$7.3B

Current assets grew 18.7% — improving short-term liquidity or inventory/receivables build.

Total Liabilities
Balance Sheet
+11.6%
$8.6B→$9.6B

Liabilities increased 11.6% — monitor debt-to-equity ratio and interest coverage.

Current Liabilities
Balance Sheet
-10.5%
$4.7B→$4.2B

Current liabilities reduced — improved short-term financial position and working capital health.

LANGUAGE CHANGES
NEW — 2026-02-13
PRIOR — 2025-02-26
ADDED
Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 7A.
The Company s fiscal year ended January 3, 2026 ( 2025 ) included fifty-three weeks of operations.
The Company s previous two fiscal years ended on December 28, 2024 ( 2024 ) and December 30, 2023 ( 2023 ), respectively, each included fifty-two weeks of operations.
As of January 3, 2026, the Company operated 4,305 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S.
In addition, as of January 3, 2026, we served 809 independently owned Carquest branded stores across the same geographic locations served by our stores in addition to Mexico and various Caribbean islands.
Our stores operate primarily under the trade names Advance Auto Parts and Carquest .
The Company was founded in 1929 as Advance Stores Company, Incorporated, and operated as a retailer of general merchandise, including automotive parts, until the 1980s.
During the 1980s, the Company began shifting its focus, specifically targeting the sale of automotive parts and accessories to DIY customers.
In 2014, the Company acquired General Parts International, Inc., a privately-held company that was a leading distributor and supplier of original equipment and aftermarket automotive replacement products for professional markets operating under the Carquest and Worldpac trade names.
In November 2024, the Company completed the sale of the Worldpac business for net proceeds of approximately $1.44 billion after transaction costs, the final working capital adjustment recorded in the fourth quarter of fiscal 2025 and excluding the impact of taxes.
REMOVED
aap-20241228 false FY 0001158449 2024 P3Y P5Y P3Y http://fasb.org/us-gaap/2024#OtherLiabilitiesCurrent http://fasb.org/us-gaap/2024#OtherLiabilitiesCurrent http://fasb.org/us-gaap/2024#AccountsPayableCurrent Immaterial Restatement of Prior Period Financial Statements As discussed in Note 1.
Nature of Operations and Basis of Presentation , d uring the year ended December 30, 2023, the Company identified errors in its consolidated financial statements.
Commission file number 001-16797 ________________________ ADVANCE AUTO PARTS, INC.
Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 7A.
All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the Company s strategic initiatives, restructuring and asset optimization plans, financial objectives, operational plans and objectives, statements about the sale of the Company s Worldpac business, including statements regarding the benefits of the sale and use of proceeds therefrom, statements regarding expectations for economic conditions, future business and financial performance, as well as statements regarding underlying assumptions related thereto.
The Company s previous three fiscal years ended on December 28, 2024 ( 2024 ), December 30, 2023 ( 2023 ) and December 31, 2022 ( 2022 ) and each included fifty-two weeks of operations.
As of December 28, 2024, the Company operated 4,788 stores primarily under the trade names Advance Auto Parts and Carquest.
The Company was founded in 1929 as Advance Stores Company, Incorporated, and operated as a retailer of general merchandise until the 1980s.
During the 1980s, the Company began targeting the sale of automotive parts and accessories to DIY customers.
In 2014, the Company acquired General Parts International, Inc.
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