Shares of Advance Auto Parts (NYSE:AAP) soared 16.74% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results, which significantly outperformed analysts' expectations. The automotive aftermarket parts provider reported an adjusted loss per share of $0.22, substantially better than the forecasted loss of $0.82 per share.

The company's net sales for Q1 reached $2.6 billion, surpassing the estimated $2.49 billion, despite a 0.6% decrease in comparable store sales. This performance comes amidst the closure of over 500 corporate locations as part of a store optimization program. Advance Auto Parts also reported an adjusted operating loss of $8 million, considerably lower than the expected loss of $50.2 million.

In a move that further bolstered investor confidence, Advance Auto Parts reaffirmed its annual guidance for fiscal year 2025. The company projects full-year sales between $8.4 billion and $8.6 billion, with comparable store sales growth of 0.5% to 1.5%. Additionally, the adjusted earnings per share forecast ranges from $1.50 to $2.50. This positive outlook, despite the challenging economic environment and recently implemented tariffs, suggests that the company's strategic initiatives and planned mitigation actions are gaining traction.