Advance Auto Parts, Inc.’s (AAP) CEO Tom Greco on Q1 2022 Results – Earnings Call Transcript – Seeking Alpha
Advance Auto Parts, Inc. (NYSE:AAP) Q1 2022 Earnings Conference Call May 24, 2022 8:00 AM ET
Elisabeth Eisleben – SVP Communications and IR
Tom Greco – President and CEO
Jeff Shepherd – EVP and CFO
Conference Call Participants
Simeon Gutman – Morgan Stanley
Christopher Horvers – JPMorgan
Michael Lasser – UBS
Bret Jordan – Jefferies
Michael Montani – Evercore ISI
Daniel Imbro – Stephens
Welcome to the Advance Auto Parts First Quarter 2022 Conference Call. Before we begin, Elisabeth Eisleben, Senior Vice President, Communications and Investor Relations, will make a brief statement concerning forward-looking statements that will be discussed on today’s call.
Good morning, and thank you for joining us to discuss our Q1 results. I’m joined by Tom Greco, our President and Chief Executive Officer; and Jeff Shepherd, our Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will turn our attention to answering your questions.
Before we begin, please be advised that our remarks today will contain forward-looking statements. All statements other than statements of historical facts are forward-looking statements, including, but not limited to, statements regarding our initiatives, plans, projections and future performance.
Actual results could differ materially from those projected or implied by the forward-looking statements. Additional information about factors that could cause actual results to differ can be found under the captions, Forward-Looking Statements and Risk Factors in our most recent annual report on Form 10-K and subsequent filings made with the commission.
Now let me turn the call over to Tom Greco.
Thanks, Elisabeth, and good morning to everyone joining us today as we review our Q1 results and discuss progress against our long-term strategic initiatives.
Before we begin, I’d like to thank our entire team and independent partners for their dedication throughout Q1.Let me start with three key themes surrounding the first quarter. First, we delivered our eighth consecutive quarter of growth in comparable store sales, adjusted operating income dollars and adjusted earnings per share.
In addition, we did this while lapping the height of last year’s stimulus and an inflationary macro environment. Second, our strategic initiatives are gaining traction to deliver top quartile total shareholder return over the long term. And third, our financial strength provides for continued investment in our business while returning cash to shareholders.
Stepping back, we began the year as many companies did, amid uncertainty. In our industry, it was unclear how substantial broad-based inflation was going to impact consumer demand in 2022. With rising fuel prices with the use of vehicle miles driven and what the real benefit was from economic stimulus. In particular to the 2021 stimulus, we had to estimate how much this benefited our core DIY consumers.
More specifically, what role did this significant cash injection play in temporarily spiking DIY demand in Q1 2021. Through the first 10 weeks of 2022, we had a strong start. At that point, year-to-date comparable store sales were up mid-single digits. The final six weeks of our quarter were more challenging than we expected, with comparable sales declining mid-single digits, driven by DIY.
While we knew this timeframe included the most substantial lot of economic stimulus from the …….