As drivers return to the road, they’re putting more miles on their cars — and that means they need parts and services. That could explain why Advance Auto Parts, an after-market parts supplier for professional installers and do-it-yourself customers, saw a boost in Q2 of fiscal 2022.
Advance Auto Parts net sales rose 5.9 percent from the previous fiscal year to $2.6 billion in the second quarter of fiscal 2022, ending July 17, 2021. Comparable store sales were up 5.8 percent in the quarter, on the backs on a sizeable increase in the professional division of the business.
“Advance’s second quarter results highlight the strength of our team and diversified asset base as we continue to make progress on our long-term strategic objectives,” said Tom Greco, president and chief executive officer, in the company announcement. “Our top-line improvement was led by the professional business with a recovery in miles driven fueling demand as we lapped double-digit DIY omnichannel growth in the prior year.”
Advance Auto Parts returned a record $457.9 million to its shareholders through share repurchases and the company’s quarterly cash dividend.
“As we continue into the second half of 2021, we continue to prioritize the health, safety and wellbeing of our team members and customers as we have throughout the COVID-19 pandemic,” said Greco. “We’re confident our ongoing focus to serve our customers with care and speed will enable us to successfully execute against our long-term strategy.”
Advance Auto Parts now expects full-year growth in the range of $10.6 billion to $10.8 billion, up from $10.4 billion to $10.6 billion.
Car prices were up 5.29 percent in June compared to a year earlier, according to the Consumer Price Index. Dealers of used cars have seen strong growth thanks to the shortage of new vehicles, according to the Index.
CarGurus’ revenue grew by 130 percent in the second quarter compared to one year earlier and rival retailer Carvana told investors that it had delivered more than 100,000 vehicles for the three months ending June 30.