The parent company of over 10,000 NAPA Auto Parts stores reported strong sales for the first quarter that ended on March 31. Atlanta-based Genuine Parts Company reported sales from continuing operations were $4.5 billion, a 9.1 percent increase compared to $4.1 billion in the same Q1 period last year. The increase is attributed to a 4.6 percent increase in comparable sales, a 3.7 percent net benefit of foreign currency, and a 0.8 percent benefit from acquisitions.
“The GPC team remained focused on execution and demonstrated agility in delivering strong financial results,” Genuine Parts Chairman and CEO Paul Donahue said in the Thursday (April 22) earnings announcement. “We also operated through the quarter with continued focus on the physical and mental well-being of our employees, as our 50,000 teammates are the core of our success.”
He added that the company’s “positive sales growth was driven by a number of factors, including the overall strengthening economy, stimulus [checks] and execution of key initiatives.”
Net income from continuing operations on both a GAAP and adjusted basis was $217.7 million, or a diluted earnings per share of $1.50. This compares to net income from continuing operations of $122.3 million or $0.84 per diluted share in the prior year period. This is an increase of 79 percent and compares to the adjusted net income from continuing operations of $116.8 million last year.
Donahue pointed out that this marks the company’s 14th consecutive quarter of gross market expansion and managing expenses.
Auto Uptrend
Genuine Parts’ solid performance comes in the wake of similarly strong results posted recently from some of its rivals in the auto parts retailing category.
On Tuesday (April 20), Tom Greco, president and CEO of Advanced Auto Parts, said the company expects to see strong demand from both DIY omnichannel and professional customers, with strong sales growth to start 2021, noting that the current external environment is benefiting the sector.
At the same time, AutoZone said recently that its net sales increased by 15.8 percent in the second quarter of fiscal 2021 as it grew store count. The auto parts retailer reported recently that domestic same-store sales increased by 15.2 percent for the quarter.
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