Car parts retailer Advance Auto Parts, Inc. on Monday (Nov. 15) reported that net sales for the third quarter were up 3.1% to $2.6 billion, with comparable sales also increased by 3.1% and up 13.3% since the same time in 2019.
The company’s operating income dropped 10.8% in the third quarter of fiscal 2021 to $229.2 million, although the adjusted operating income was up 6.9% to $273.8 million.
“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,” said Tom Greco, president and chief executive officer, in the company announcement. “Our team members and independent partners once again adapted to a dynamic landscape and executed our plan with excellence.”
Advance Auto Parts’ multiyear focus on its balance sheet began to bear fruit this year with a 19% spike in free cash flow to $734 million, up from $616.6 million at the same time in 2020. The company’s free cash jumped 36% from 2019 to 2021.
Greco said the company is also encouraged by “positive sales trends” seen so far in the first few weeks of the fourth quarter, with the two-year stack remaining in line with growth seen in the third quarter.
“We look forward to finishing 2021 with momentum and remain confident in our ability to drive total shareholder return in the coming years,” he said.
Related: Advance Auto Parts Debuts New DIY Retail Concept
Earlier this month, Advance Auto Parts debuted Carquest by Advance, an initiative focused on the do-it-yourself approach to automotive repair by independent owners.
Carquest by Advance stores have DIY auto parts and products from Advance, including DieHard batteries, so independent owners can call on Advance’s network of supplier partners and work with local suppliers to carry specific parts that meet their customers’ needs.
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