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Advance Auto Parts

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Advance Auto Parts, Inc.
Company typePublic
IndustryAuto Parts Retail
FoundedApril 29, 1932; 92 years ago (1932-04-29)
FounderArthur Taubman
HeadquartersRaleigh, North Carolina, U.S.
Number of locations
4,935 Advance Stores; 1,245 Carquest branded stores (2023)
Area served
  • United States
  • Canada
Key people
ProductsReplacement automotive parts & accessories
RevenueIncrease US$11.3 billion (2023)
Decrease US$114 million (2023)
Decrease US$29.7 million (2023)
Total assetsIncrease US$12.3 billion (2023)
Total equityDecrease US$2.52 billion (2023)
Number of employees
69,000 (2023)
Subsidiaries
  • Autopart International
  • Carquest
    • Carquest Canada
  • WorldPac
    • WorldPac Canada
    • WorldPac Redline
Websiteadvanceautoparts.com
Footnotes / references
[1]

Advance Auto Parts, Inc. is an American automotive aftermarket parts provider. Headquartered in Raleigh, North Carolina, it serves professional installer and do it yourself (DIY) customers. As of December  2023, Advance operated 4,935 stores and 321 Worldpac branches in the United States and Canada. The company also serves 1,245 independently owned Carquest-branded stores in the U.S., Mexico, The Cayman Islands, Turks and Caicos, and British Virgin Islands.[1]

Net sales for Advance Auto Parts in 2023 were $11.3 billion (up 1.2% from 2022). Gross profit for 2023 $4.5 billion. Operating profit for the full year 2023 $114.4 million, 1.0% of net sales (6.0% of net sales in 2022). Net cash provided by operating activities was $0.3 billion for the full year 2023.[2]

In November 2024, Advance Auto Parts announced it would close four distribution centers and more than 700 stores, including over 500 corporate locations and about 200 independently-owned stores, after a quarterly report showed a drop in profits.[3][4]

History

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2006-2010 Chevrolet HHR used as the fleet vehicle of the company

In April 1932, Arthur Taubman purchased the Advance Stores from Pep Boys, with two stores in Roanoke, Virginia, and one in Lynchburg, Virginia.[5] Advance premiered on the Fortune 500 list of companies in 2003 at No. 466.[6]

In January 2005, Advance was named the “Best Managed Company in America” in the retail sector by Forbes.[7] As of July 2018, the corporation was ranked at No. 1,412 on the Forbes "World's Biggest Public Companies" list.[8] Advance ranked No. 326 on the 2019 Fortune 500 list.[6]

The company retails various brand name, original equipment manufacturer (OEM) and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks.[citation needed] Advance Auto Parts shares are mainly held by institutional investors such as The Vanguard Group, BlackRock, State Street Corporation, and others.[9]

Expansion and changes

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The first major expansion of Advance Auto Parts was in 1998 when the company acquired the remaining operations of Western Auto, an auto parts and general store retailer. Most of the Western Auto operations had been taken over by Sears, Roebuck and Co. in 1987.[10] Then, in April 2001, Advance Auto Parts acquired Carport Auto Parts, a regional retail chain with 29 stores in Alabama and Mississippi.[11] On November 28, Advance acquired Discount Auto Parts, Inc., a regional auto parts chain with 671 stores in Florida, Alabama, Georgia, South Carolina, and Louisiana.[12][13] Upon completion of this merger, Advance Auto Parts became a publicly traded company, listed as a common stock on the New York Stock Exchange under the symbol AAP. The year ended with 2,484 stores in 38 states.

Interior of an Advance Auto Parts store in Fairfax County, Virginia

In July 2002, Advance Auto Parts received bankruptcy court approval to acquire 57 Trak Auto stores in northern Virginia, Washington, DC, and eastern Maryland.[14][15] In December 2012, Advance Auto Parts acquired BWP Distributors—a Carquest franchise for the New England region—that included the transfer of 124 company owned retail locations plus 2 distribution centers.[16] The responsibility for 92 independently owned locations that were service by BWP were transferred to General Parts, Inc., the largest Carquest franchise along with one distribution center for servicing those locations.

Advance Auto Parts entered into a definitive agreement to acquire General Parts International, Inc. (GPI), a privately held distributor and supplier of equipment and aftermarket replacement products for commercial markets operating under the Carquest and WorldPac brands on October 16, 2013.[17] The deal created the largest automotive aftermarket parts provider in North America.[18] GPI, headquartered in Raleigh, North Carolina, has seen a significant rise in personnel since being acquired by Advance.[19]

On September 30, 2015, Starboard Value LP, an activist investment firm disclosed they had taken a 3.7 percent stake in Advance Auto Parts.[20] On January 2, 2016, Darren Jackson resigned his position as CEO.[21] On April 4, 2016, Advance announced Frito-Lay North America CEO Tom Greco would succeed Jackson as CEO.

Advance stock declined throughout 2016 and 2017, but in 2018 Advance was the #5 top performing stock of the S&P 500[22] outperforming the aftermarket automotive parts industry by more than 30 percent.[23]

In November 2018, Advance Auto Parts announced the relocation of its headquarters from Roanoke, Virginia to Raleigh, North Carolina.

On December 23, 2019, Advance Auto Parts announced its purchase of the DieHard battery brand from Sears in a $200 million, all-cash deal.[24] To promote the acquisition and availability of the brand at Advance and Carquest, the company hired Die Hard actor Bruce Willis to be part of a promotional film that was released during the 2020 holiday season.[25]

In March 2021, Advance announced its plans to lease the retail space of 109 Pep Boys stores in California and convert them to Advance stores, enabling the company to expand its retail footprint in a strategic market.

On September 11, 2023, Shane O'Kelly succeeded Tom Greco as president and CEO of Advance.[26] Greco announced his planned retirement earlier in the year. In November 2023, Advance Auto Parts announced it is exploring the sale of Worldpac and its Canadian business.

In March 2024, Advance Auto Parts announced it appointed three new directors to its board and reached cooperation agreements with activist investors Third Point and Saddle Point Management.[27] The investors then owned a five percent stake in Advance Auto Parts. The company was joined by Brent Windom, ex-CEO of Uni-Select, Gregory Smith, executive vice president at medical device company Medtronic and Thomas Seboldt, who worked at O'Reilly Automotive.[28]

In August 2024, Advance Auto Parts announced it had sold Worldpac to the investment firm Carlyle for $1.5 billion.[29] The closing of the Worldpac sale was announced on November 4, 2024.[30]

Data breach

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In July 2024, Advance Auto Parts announced a massive data breach in April–May 2024, exposing the name, social security numbers, birthdates, and other private information of over 2.3 million customers. The data breach was via Snowflake Inc.'s breach. The hacking group claimed to have records of 380 million customers in 3 terabytes of files.[31][32][33]

Store closures

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On November 14, 2024, Advance Auto Parts announced plans to close 523 corporate stores, 204 independently-owned locations, and four distribution centers by the middle of 2025. It also flagged that it will reduce its headcount, but did not provide details. The overhaul is expected to cost the company between $350 million and $750 million.[34][35]

Motorsport sponsorships

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From 2009 to 2013, Advance Auto Parts was a title sponsor of Monster Jam and sponsored a truck on the circuit called the Advance Auto Parts Grinder. In 2023, Advance Auto Parts took over as the official sponsor of the checkered flag in IndyCar.[36] Advance Auto Parts has served as a sponsor in NASCAR, where it is the official auto parts retailer of the sanctioning body.[37]

The company sponsored the 2017 Advance Auto Parts Clash exhibition race at Daytona International Speedway.[38] Advance became the title sponsor of the NASCAR Advance Auto Parts Weekly Series in 2020.[37]

Teams

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Advance Auto Parts has partnered in the past with racing teams as well, such as Alex Bowman, Tommy Baldwin Racing, and JR Motorsports.[39][40]

Advance became the primary sponsor of NHRA Funny Car driver Courtney Force, the winningest female Funny Car driver in the history, in December 2016. The agreement ran through the entire 2017 and 2018 seasons.[41] Force's sister, Brittany Force, driving her dragster was sponsored by Advance for the 2019 NHRA season.[42] Current sponsorships include Team Penske (with driver Ryan Blaney) in NASCAR; and Josh Hart who represents Advance's TechNet Professional brand in the Top Fuel class of NHRA.[43]

See also

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References

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  1. ^ a b "2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. March 12, 2024.
  2. ^ "Advance Auto Parts Reports Fourth Quarter and Full Year 2023 Results" (Press release). Advance Auto Parts. Archived from the original on February 28, 2024. Retrieved March 25, 2024 – via Business Wire.
  3. ^ Alund, Natalie Neysa. "Advance Auto Parts to close hundreds of stores, slash jobs amid sluggish demand". USA TODAY. Retrieved November 18, 2024.
  4. ^ Valinsky, Jordan (November 14, 2024). "Advance Auto Parts is closing more than 700 locations | CNN Business". CNN. Retrieved November 18, 2024.
  5. ^ "Our History". Advance Auto Parts. Retrieved April 18, 2016.
  6. ^ a b "Advance Auto Parts". Fortune. Retrieved November 14, 2024.
  7. ^ "Advance Auto Parts Named 'Best Managed Company in America' in Retail Sector by Forbes Magazine". The Auto Channel. January 26, 2005. Retrieved November 14, 2024.
  8. ^ Bruce Adams, Search Autoparts.com Aftermarket Business World. Published 4/25/17, pulled 8/17/18.
  9. ^ "Advance Auto Parts Inc (AAP) Ownership Summary". NASDAQ.
  10. ^ "Sears Is Selling Its Western Auto Supply Unit". Los Angeles Times. Bloomberg News. August 18, 1998.
  11. ^ Cooper, David (March 16, 2001). "Carport will be sold to Advance Auto Parts". Tuscaloosa News. p. B7. Retrieved November 14, 2024.
  12. ^ Sasso, Michael (January 23, 2002). "Discount Auto May Lose 70 Stores; Advance Auto may close the stores as part of its merger". Lakeland Ledger. p. E1.
  13. ^ "Discount Auto shareholders approve Advance merger". Tampa Bay Business Journal. November 30, 2001.
  14. ^ Clabaugh, Jeff (July 23, 2002). "Advance Auto picks up Trak Auto locations". Washington Business Journal. Retrieved November 14, 2024.
  15. ^ "Advance Auto Parts to Acquire Trak Auto Parts Stores in Washington, D.C., Northern Virginia, and Eastern Maryland Markets" (Press release). Advance Auto Parts. July 23, 2002. Archived from the original on July 14, 2012. Retrieved February 27, 2012.
  16. ^ "Advance Auto Parts Announces Closing of Acquisition of BWP Distributors". Reuters. December 31, 2012. Archived from the original on June 28, 2014.
  17. ^ Snipes, Cameron (December 16, 2013). "Year in Review: Sloan sells Raleigh's General Parts for $2 billion". Triangle Business Journal.
  18. ^ Jaisinghani, Sagarika (October 16, 2013). "Advance Auto expands repair shop business with $2 billion buy". Yahoo Finance. Reuters.
  19. ^ "Advance Auto Parts to create 600 jobs in Raleigh". WRAL News. June 18, 2014. Retrieved March 16, 2016.
  20. ^ "Starboard takes stake in Advance Auto, urges changes". Reuters. September 30, 2015. Retrieved March 16, 2016.
  21. ^ Hoyle, Amanda (November 12, 2015). "Activist investor Starboard Value shakes up leadership at Advance Auto Parts, CEO Darren Jackson to step down". Triangle Business Journal. Retrieved March 16, 2016.
  22. ^ Campbell, Todd (December 31, 2018). "The 5 Top-Performing S&P 500 Stocks of 2018". The Motley Fool. Retrieved April 15, 2019.
  23. ^ "4 Reasons to Add Advance Auto Parts to Your Portfolio Now". NASDAQ. December 28, 2018. Retrieved April 15, 2019.
  24. ^ Thomas, Lauren (December 23, 2019). "Advance Auto Parts to buy DieHard brand from Sears for $200 million in cash deal". CNBC. Retrieved December 28, 2019.
  25. ^ Adams, Peter (October 19, 2020). "Bruce Willis reprises 'Die Hard' role in Advance Auto Parts ads pushing DieHard batteries". Marketing Dive. Retrieved January 7, 2021.
  26. ^ "Advance Auto Parts Announces Executive Leadership Changes". AfterMarketNews.
  27. ^ Thomas, Lauren (March 11, 2024). "Advance Auto Parts Strikes Settlement With Dan Loeb's Third Point". The Wall Street Journal. Retrieved November 14, 2024.
  28. ^ Zilber, Ariel (March 11, 2024). "Advance Auto Parts to add 3 new directors after Dan Loeb's firm takes stake". New York Post. Archived from the original on March 22, 2024. Retrieved November 14, 2024.
  29. ^ "Advance Auto Parts Announces Sale of Worldpac to Carlyle for $1.5 Billion". Carlyle.com. August 22, 2024. Retrieved November 17, 2024.
  30. ^ "Advance Auto Parts Announces Closing of Sale of Worldpac to Carlyle". finance.yahoo.com. November 4, 2024. Retrieved November 17, 2024.
  31. ^ Grieg, Jonathan (July 11, 2024). "Advance Auto Parts says more than 2 million impacted by data breach". The Record. Retrieved July 13, 2024.
  32. ^ Burgess, Matt (June 6, 2024). "The Snowflake Attack May Be Turning Into One of the Largest Data Breaches Ever". WIRED. Retrieved November 14, 2024.
  33. ^ Gatlan, Sergiu (June 5, 2024). "Advance Auto Parts stolen data for sale after Snowflake attack". Bleeping Computer. Retrieved July 13, 2024. ...data stolen from Advance's Snowflake cloud storage environment includes: 380 million customer profiles (name, email, mobile, phone, address, and more); 140 million customer orders 44 million Loyalty / Gas card numbers (with customer details)...
  34. ^ https://www.foxbusiness.com/markets/advance-auto-parts-closing-hundreds-locations-following-sluggish-performance
  35. ^ https://www.wsj.com/business/retail/advance-auto-parts-to-close-stores-as-sales-outlook-misses-views-ebe8aee8
  36. ^ "Advance Auto Parts To Sponsor Checkered Flag". IndyCar Series.
  37. ^ a b "Advance Auto Parts to sponsor NASCAR Weekly Series in multiyear agreement" (Press release). NASCAR. June 10, 2020. Retrieved June 10, 2020.
  38. ^ Menzer, Joe (January 18, 2017). "Advance Auto Parts steps up to sponsor Clash exhibition at Daytona". Fox Sports. Retrieved January 18, 2017.
  39. ^ "Alex Bowman to Carry Advance Auto Parts on the No. 7 Chevy SS at Kentucky Speedway for Quaker State 400" (Press release). Advance Auto Parts. July 1, 2015. Retrieved November 14, 2024 – via Speedway Media.
  40. ^ "JR Motorsports Welcomes Advance Auto Parts for 2016". JR Motorsports. February 15, 2016. Retrieved January 18, 2017.[dead link‍]
  41. ^ "Advance Auto Parts signs multi-year sponsor relationship to back Courtney Force". NHRA. December 9, 2016. Retrieved November 14, 2024.
  42. ^ Bonkowski, Jerry (January 25, 2019). "NHRA: Brittany Force to assume her sister's Advance Auto Parts sponsorship". NBC Sports. Retrieved November 14, 2024.
  43. ^ "Hart inks multi-year deal with Advance Auto Parts". NHRA. January 10, 2023. Retrieved January 3, 2023.
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