Advance Auto Parts' 1Q07 Earnings: Five Key Metrics

Jack Brouillard, interim Chairman, President and CEO stated on Advance Auto Parts' (AAP) earnings release:

I will be serving as interim CEO while we undertake a nationwide search for a new CEO. I am proud to have served as a member of Advance's board of directors since 2004 and look forward to working with our very capable management team to pursue the many opportunities we believe we have to continue our growth and improve our performance.

As a result of our comprehensive strategy review, we have been able to take a more in-depth look at the industry and our customers and we believe those understandings will help us to improve our sales growth. Through the lens of our strategy, we will be creating a more efficient business model enabling us to convert sales growth into increased profits.

Advance 1Q07 Earnings
Advance reported pretty disappointing "same store sales" comparisons last night after the close. I don't like to get caught up in the sentiment.

Below are 5 key metrics I think you might find helpful.

Metric #1: Avg revenue per store

*Special Note. Even though I say 1Q07, keep in mind, this is just my closest approximation to the first three months of 2007. For AutoZone (AZO), it is technically their second fiscal quarter (FYQ2), which was for the twelve week period ended February 10, 2007. For O'Reilly (ORLY), it was the company's results in January, February, and March (so more reflective of a real first quarter). And for Advance, it is pretty close, as it is for the period ended April 21, 2007.

Metric #2: gross profit per store

Keep in mind, AutoZone's gross profit per store is just my best guess, as AutoZone's gross profit figures include its Mexico stores and AllData division. I have simply taken AutoZone's total gross profit and divided by its domestic store count. Any deviation in the profitability at these divisions could skew this calculation (but we just don't know the segment profit break out).

Metric #3: Operating income per store

Once again, keep in mind this is just a best guess for AutoZone given the unknown of Mexico and AllData division profits.

Metric #4: Total store growth

Metric #5: Tax rate