Advance Auto Parts: I Don't See Any Signs Of Demand Recovery
Summary
- Downgrade AAP to sell: recent data shows worsening store traffic, deteriorating consumer perception, and persistent market share losses versus peers.
- Management's guidance and third-party data suggest demand momentum is weak, making FY25 same-store-sales growth targets unlikely.
- The DIY segment remains a headwind, with macro pressures and tariffs adding complexity and likely margin pressure to the turnaround story.
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