Page 1

B Advance Auto Parts Reports Third Quarter 2021 Results Net Sales Increased 3.1 % to $ 2.6 billion , Comparable Store Sales Increased by 3.1 % Gross Margin Improved 72 Basis Points to 45.1 % , Adjusted Gross Margin Improved 246 Basis Points to 46.2 % Diluted EPS Increased 25.8 % to $ 2.68 ; Adjusted Diluted EPS Increased 21.6 % to $ 3.21 RALEIGH , N.C. , November 15 , 2021 - Advance Auto Parts , Inc. ( NYSE : AAP ) , a leading automotive aftermarket parts provider in North America , that serves both professional installer and do - it - yourself customers , announced its financial results for the third quarter ended October 9 , 2021 . " In Q3 , we delivered another quarter of improved top - line growth and margin expansion and returned significant cash to our shareholders in line with the strategy we outlined in April , " said Tom Greco , president and chief executive officer . " Following several years of investments in both our team as well as our diversified physical and digital asset base , we continue to differentiate Advance in the marketplace . Our team members and independent partners once again adapted to a dynamic landscape and executed our plan with excellence . Third quarter comparable sales grew 3.1 % on top of double - digit comparable store sales in the third quarter of 2020. Importantly , we delivered a two - year stack of 13.3 % in the quarter directly in line with our Q2 2021 two - year stack comp growth of 13.3 % . Our professional business once again led our sales improvement as well as the ongoing recovery in key urban markets where miles driven was most impacted in 2020. In terms of our DIY omnichannel business , we were pleased to end the quarter slightly positive after lapping our toughest quarterly comparison of high double digit growth from the prior year . " Several years of focus on our balance sheet resulted in Free cash flow improvement of 19 % to $ 734.0 million compared with $ 616.6 million year - to - date in 2020. Free cash flow was up 36 % when compared to 2019. As a result , and in line with our commitment of returning excess cash to our shareholders , we returned $ 291.2 million in Q3 and $ 952.6 million through the first three quarters of 2021 through a combination of share repurchases and our quarterly cash dividend . We're encouraged by the positive sales trends during the first four weeks of our fourth quarter with our two - year stack remaining in line with Q3 . We look forward to finishing 2021 with momentum and remain confident in our ability to drive total shareholder return in the coming years . " Q3 2021 Highlights ( 1 ) Net sales increased 3.1 % to $ 2.6 billion Comparable store sales ( 2 ) increased 3.1 % ; On a two - year stack , Comparable store sales increased 13.3 % Operating income decreased 10.8 % to $ 229.2 million ; Adjusted operating income ( 3 ) increased 6.9 % to $ 273.8 million Operating income margin decreased by 136 basis points to 8.7 % ; Adjusted operating income margin ( 3 ) expanded 37 basis points to 10.4 % Diluted EPS of $ 2.68 increased 25.8 % compared with the third quarter of 2020 and increased 53.1 % compared with the third quarter of 2019 ; Adjusted Diluted EPS ( 3 ) increased 21.6 % to $ 3.21 compared with the third quarter of 2020 and increased 30.5 % compared with the third quarter of 2019 Year to date Operating cash flow increased to $ 924.9 million ; Free cash flow ( 3 ) increased to $ 734.0 million Returned $ 291.2 million to shareholders through a combination of share repurchases and quarterly cash dividends ( 1 ) All comparisons are based on the same time period in the prior year . ( 2 ) Comparable store sales exclude sales to independently owned Carquest locations . ( 3 ) For a better understanding of the company's adjusted results , refer to the reconciliation of non - GAAP adjustments in the accompanying financial tables included herein . AUTOPART WORLDPAC CARQUEST AUTO PARTS Advance Auto Parts