Advance Auto Parts vs. Chewy: Gradual Growth vs. Stagnation

Advance Auto Parts: Flat Baseline With Seasonal Spikes

Advance Auto Parts (NYSE:AAP) operates an extensive retail network that supplies replacement parts, automotive accessories, batteries, and essential maintenance items to both professional mechanics and individual consumers across North America.

The retailer recently entered a definitive agreement to sell its Worldpac wholesale distribution business to Carlyle for $1.5 billion in cash, and it simultaneously lowered its full-year financial outlook.

Chewy: Delivering Gradual Revenue Expansion

Chewy Inc. (NYSE:CHWY) functions as a comprehensive online e-commerce retailer providing food, medical supplies, and prescription medications for a wide variety of domestic pets throughout the United States.

It hosted an open house for a new physical veterinary clinic in Colorado, and it outlined a strategic initiative to integrate artificial intelligence tools across its pharmacy and customer service operations.

Why Revenue Matters for Investors

Revenue here refers to the data provider's standardized income statement revenue line item, which helps investors evaluate whether a company is successfully attracting customer dollars and scaling its core operations over time.

Advance Auto Parts vs. Chewy Revenue over the last 8 quarters. Note: for Q1 2025, Q1 2026, the two companies' reporting periods differ in length by more than 14 days due to differing fiscal calendars, which can make the change between quarters look bigger or smaller than an apples-to-apples comparison would show.

Quarterly Revenue for Advance Auto Parts and Chewy

Foolish Take

Chewy is establishing a steady growth pattern. As one can see in the chart, revenue growth isn't large, but it is consistently upward moving, as viewed by each year's comparable quarter. (Seasonality means looking at revenue sequentially can give investors a distorted impression of a business' growth, sometimes).

In a recently reported quarter, Chewy management noted that its Autoship program grew faster than overall sales, implying that many customers' standing orders will continue to provide a solid base for the company. The company also believes that in the long run, veterinarian and general pet health services are a huge untapped market for Chewy. The business recently closed on the acquisition of Modern Animal, which delivers high profitability per location and is a strong complement to Chewy's existing business.

For fiscal 2026, sales are seen rising 7% to $13.5 billion, with net income up nearly 50% to $333 million, according to consensus analyst estimates.

Advance Auto Parts is in the midst of turning around the struggles it has experienced over the past few years around sales growth, margins, and market share. The aftermarket auto parts business has been in a slump, due largely to a mix of factors: weak do-it-yourselfer demand, vehicle electrification, intense competition, and general pocketbook pressures on consumers.

The slump in sales is reflected in the chart. Revenue is the lifeblood of any business, and its decline is something investors should closely monitor.

Company management has been addressing the business's issues by rolling out a new multi-year turnaround program. That started in late 2024, including closing stores, optimizing store footprints, and overhauling its supply chain. To date, the program has produced mixed results. First-quarter fiscal 2026 results that were much better than expected, with revenue of $2.6 billion and net income of $25 million. But the second quarter disappointed the street, and shares plunged as revenue fell short of consensus at $2 billion, even as net income and other metrics beat expectations.

Analysts see full-year 2026 sales slightly lower at $8.57 billion, with net income improving to $167 million, roughly four times 2025 levels.

Data source: Financial Modeling Prep. Note: for Q1 2025, Q1 2026, the two companies' reporting periods differ in length by more than 14 days due to differing fiscal calendars, which can make the change between quarters look bigger or smaller than an apples-to-apples comparison would show. Data as of Oct. 22, 2026.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy.