Advance Auto Parts, Inc. Revenue in 2025

Advance Auto Parts, Inc. reported $8.6B in revenue for fiscal year 2025. This represents a decline of 5.4% compared to the 2024 figure of $9.1B.

The $68 million net income that Advance Auto Parts reported for fiscal 2025 is almost entirely a distortion. The company recorded $431.5 million in inventory write-downs and $204.2 million in impairment charges against long-lived assets during the fiscal year, but also recognized a $349.5 million gain on the Worldpac divestiture. Strip those items out and the underlying operating performance of the continuing retail business was closer to breakeven — a brutal assessment for a company with $8.6 billion in revenue. Revenue has declined three consecutive years: $9.21 billion in fiscal 2023, $9.09 billion in fiscal 2024, $8.60 billion in fiscal 2025. The 2025 decline includes the impact of the Worldpac divestiture, which removed approximately $500 million in revenue but also removed a business that was consuming capital and management attention disproportionate to its contribution. The $3.4 billion market capitalization against $8.6 billion in revenue implies a 0.4 times price-to-sales ratio — extremely cheap by any consumer retail standard. AutoZone trades at over 3 times revenue. O'Reilly Automotive trades at approximately 4 times revenue. The gap reflects the market's view that Advance's operational model is not currently generating the margins that the category's economics should support, and that the path to closing that gap is unclear. CEO O'Kelly's 2024 performance incentive plan, with metrics tied to relative total shareholder return against the S&P 500, did not vest — the 2022-2024 performance period ranked below threshold. That outcome is a precise summary of where Advance Auto Parts stands relative to the broader market: a company with a viable category position and an operational execution problem that three successive management teams have promised to fix.