Advance Auto Parts (NYSE:AAP) surged 46% intra-day today after reporting a narrower-than-expected Q1 loss and topping revenue forecasts, while reaffirming its full-year guidance despite ongoing macro challenges.

For the quarter, the company posted an adjusted loss of $0.22 per share, a significant beat against analyst expectations of a $0.69 loss. Revenue came in at $2.58 billion, exceeding the $2.51 billion consensus, though down from $2.8 billion a year earlier.

Comparable store sales fell 0.6% year-over-year, excluding the impact of over 500 corporate store closures tied to an ongoing optimization effort. Gross margin contracted slightly to 42.9% from 43.4%, primarily due to liquidation-related markdowns.

Despite headwinds from economic pressures and new tariffs, Advance Auto Parts maintained its 2025 guidance, forecasting net sales between $8.4 billion and $8.6 billion, same-store sales growth of 0.5% to 1.5%, and adjusted EPS between $1.50 and $2.50—bracketing the $1.54 consensus.

The strong Q1 beat and reaffirmed outlook boosted investor confidence in the company’s turnaround plan and operational stability.