The following discussion and analysis of financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended January 3, 2026 (filed with the SEC on February 13, 2026) which the Company refers to as the “2025 Form 10-K”, and the Company’s unaudited condensed consolidated financial statements and the notes to those statements that appear elsewhere in this report. The results of operations for the interim periods are not necessarily indicative of the operating results to be expected for the full year. Consistent with the previous fiscal year, the Company’s first quarter of the year contained sixteen weeks. The Company’s remaining three quarters each consist of twelve weeks. Second Quarter Fiscal 2026 Management Overview The Company’s financial results for the second quarter of 2026 includes: •Net sales during the second quarter of fiscal 2026 were $2.0 billion, a decrease of 0.5% compared with the second quarter of fiscal 2025. Comparable store sales decreased by 0.5%. •Gross profit margin for the second quarter of fiscal 2026 was 46.2% of net sales, an increase of 267 basis points compared with the second quarter of fiscal 2025. •Selling, general and administrative ("SG&A") expenses, exclusive of restructuring and related expenses for the second quarter of fiscal 2026, were 40.6% of net sales, a decrease of 35 basis points compared with the second quarter of fiscal 2025. •The Company generated diluted earnings per share of $0.90 during the second quarter of fiscal 2026, compared with diluted earnings per share of $0.25 for the comparable period of 2025. Business and Risks Update The Company continues to make progress on the various elements of its business plan, which is focused on improving the customer experience, margin expansion, and driving consistent execution for both professional and DIY customers. On February 20, 2026, the U.S. Supreme Court overturned certain U.S. tariffs imposed under the International Emergency Economic Powers Act ("IEEPA"). During fiscal 2025, the Company incurred product costs directly related to the IEEPA tariffs. Tariffs directly paid by the Company are subject to direct refund via the IEEPA tariff refund process. Given the significant uncertainty around the recovery of tariffs that were previously paid, the Company recognizes IEEPA tariff refunds if and when received. During the twelve weeks ended July 18, 2026, the Company recognized $26 million in IEEPA tariff refunds, which are reflected as a benefit to cost of sales on the condensed consolidated statement of operations as of July 18, 2026. The Company will continue to assess the recoverability of these tariffs, and will recognize any future recoveries when realized or realizable, the magnitude of which in future periods is not expected to be material to the Company's condensed consolidated financial statements. During the second quarter of fiscal 2026, the Company entered into a Rule 10b5-1 Repurchase Plan (the "Repurchase Plan") to effect repurchases of outstanding principal amounts of the Company's outstanding 1.75% Senior Unsecured Notes due October 1, 2027 (the "2027 Notes") and the 5.95% Senior Unsecured Notes due March 9, 2028 (the "2028 Notes"), subject to certain price and market conditions. During the second quarter ended July 18, 2026, the Company repurchased an aggregate $0.1 million and $29 million of outstanding principal related to the 2027 Notes and 2028 Notes under the Repurchase Plan, respectively, which was reflected in the carrying value of long-term debt on the condensed consolidated balance sheets. The plan was terminated upon completion of the repurchases. The recent geopolitical events in the Middle East have continued to cause significant disruption in the normal flow of oil, refined petroleum products and related commodities, which has increased the variability of the price of oil and non-petroleum products. Although the length and impact of these events are highly unpredictable, they could lead to market disruptions, including significant volatility in prices, supply, credit and capital market, consumer behavior and supply chain disruptions. These items, along with actual 18 Table of Contents or perceived weakness in the economic and business climate, could have an adverse impact on our financial condition and results of operations in future periods. Industry Update Operating within the automotive aftermarket industry, the Company is influenced by a number of general macroeconomic factors, many of which are similar to those affecting the overall retail industry. In addition to the “Business and Risk Update” section included within this Management’s Discussion and Analysis of Financial Condition and Results of Operations, these factors include, but are not limited to: •Significant changes in U.S trade policies, including the global trade tariffs •Inflationary pressures, including logistics and labor •Global supply chain disruptions •Cost of fuel •Changes in the number of miles driven •Unemployment rates •Interest rates •Consumer confidence and purchasing power •Competition •Changes in new car sales •Economic and geopolitical uncertainty •Foreign currency exchange volatility While these factors tend to fluctuate, the Company remains confident in the long-term growth prospects for the automotive parts industry. Stores The key factors used in selecting sites and market locations in which the Company operates include population, demographics, traffic count, vehicle profile, number and strength of competitors’ stores and the cost of real estate. During the twenty-eight weeks ended July 18, 2026, nine stores were opened and three stores were closed, resulting in a total of 4,311 stores as of the end of the second fiscal quarter compared with a total of 4,305 stores as of January 3, 2026. 19 Table of Contents Results of Operations Twelve Weeks Ended ($ in millions) July 18, 2026 July 12, 2025 Change(1) Basis Points Net sales $ 2,000 100.0 % $ 2,010 100.0 % $ (10 ) — Cost of sales 1,077 53.9 1,136 56.5 59 (267 ) Gross profit 923 46.2 874 43.5 49 267 Selling, general and administrative expenses, exclusive of restructuring and related expenses 812 40.6 823 40.9 11 (35 ) Restructuring and related expenses 10 0.5 29 1.4 19 (94 ) Selling, general and administrative expenses 822 41.1 852 42.4 30 (129 ) Operating income 101 5.1 22 1.1 79 396 Interest expense (48 ) (2.4 ) (19 ) (0.9 ) (29 ) (145 ) Other income, net 22 1.1 18 0.9 4 20 Income tax expense 20 1.0 6 0.3 (14 ) 70 Net income $ 55 2.8 % $ 15 0.7 % $ 40 200 Twenty-Eight Weeks Ended ($ in millions) July 18, 2026 July 12, 2025 Change(1) Basis Points Net sales $ 4,614 100.0 % $ 4,593 100.0 % $ 21 — Cost of sales 2,511 54.4 2,609 56.8 98 (238 ) Gross profit 2,103 45.6 1,984 43.2 119 238 Selling, general and administrative expenses, exclusive of restructuring and related expenses 1,892 41.0 1,945 42.3 53 (134 ) Restructuring and related expenses 41 0.9 148 3.2 107 (233 ) Selling, general and administrative expenses 1,933 41.9 2,093 45.6 160 (368 ) Operating income (loss) 170 3.7 (109 ) (2.4 ) 279 606 Interest expense (113 ) (2.4 ) (46 ) (1.0 ) (67 ) (145 ) Other income, net 53 1.1 45 1.0 8 17 Income tax expense (benefit) 30 0.7 (149 ) (3.2 ) (179 ) 389 Net income $ 80 1.7 % $ 39 0.8 % $ 41 88 (1)Represents favorable (unfavorable) year over year change. Note: Sums may not equal totals due to rounding. Net Sales For the twelve and twenty-eight weeks ended July 18, 2026, net sales were relatively flat. Comparable stores sales for the twelve and twenty-eight weeks ended July 18, 2026 decreased 0.5% and increased 1.7%, respectively, compared with the same period in 2025. The Company calculates comparable store sales based on the change in store or branch sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. The Company includes sales from relocated stores in comparable store sales from the original date of opening. Comparable store sales is intended only as supplemental information and is not a substitute for Net sales presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). 20 Table of Contents Gross Profit For the twelve weeks ended July 18, 2026 and July 12, 2025, gross profit was $0.9 billion, or 46.2% of net sales, and $0.9 billion, or 43.5% of net sales, respectively. For the twenty-eight weeks ended July 18, 2026 and July 12, 2025, gross profit was $2.1 billion, or 45.6% of net sales, and $2.0 billion or 43.2% of net sales, respectively. The increase in gross profit as a percentage of net sales compared to the prior comparative periods was driven by expansion in product margin and the recognition of tariff refunds in the second quarter of fiscal 2026. The twenty-eight weeks ended July 18, 2026 also benefited from the impact of lower margin liquidation sales related to our 2024 Restructuring Plan, which negatively impacted gross profit margin in the twenty-eight weeks ended July 12, 2025. Selling, General and Administrative Expenses, Exclusive of Restructuring and Related Expenses For the twelve weeks ended July 18, 2026, SG&A expenses, exclusive of restructuring and related expenses, were relatively flat as compared to the prior comparative period. For the twenty-eight weeks ended July 18, 2026, SG&A expenses, exclusive of restructuring and related expenses, were $1.9 billion, or 41.0% of net sales, compared with $1.9 billion, or 42.3% of net sales, for the twenty-eight weeks ended July 12, 2025. Overall, SG&A expenses decreased in the twenty-eight weeks ended July 18, 2026, as compared to the prior comparative period, as a result of operating costs eliminated for stores closed as a result of our 2024 Restructuring Plan. Restructuring and Related Expenses For the twelve weeks ended July 18, 2026, restructuring and related expenses were $10 million, or 0.5% of net sales compared to $29 million, or 1.4% of net sales for the twelve weeks ended July 12, 2025. For the twenty-eight weeks ended July 18, 2026, restructuring and related expenses were $41 million, or 0.9% of net sales, compared to $148 million, or 3.2% of net sales, in the prior year comparable period. The decrease in expenses as compared to the same periods in fiscal 2025 relates to timing of the Company’s 2024 Restructuring Plan which was announced during the fourth quarter of fiscal 2024, with the majority of costs being incurred during fiscal 2024, and during the first half of fiscal 2025 following the closure of all stores under the Plan in the first quarter of fiscal 2025. Substantially all of the costs under the restructuring plans have been incurred as of July 18, 2026. The Company estimates that it will incur additional expenses of approximately $10 million to $20 million through the remainder of fiscal 2026 related to the active restructuring plans. See Note 11. Restructuring, of the Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1. Interest Expense For the twelve weeks and twenty-eight weeks ended July 18, 2026, interest expense increased as compared to the same periods in fiscal 2025, due to an increase in the principal amount of interest bearing long-term debt from the debt issuance completed in the third quarter of fiscal 2025. Other Income, Net For the twelve weeks and twenty-eight weeks ended July 18, 2026, other income, net increased as compared to the same period in fiscal 2025, due to higher interest income earned from higher cash and cash equivalent balances held due to the net proceeds received from the issuance of $1.95 billion in Senior Unsecured Notes in the third quarter of fiscal 2025. This was partially offset by lower interest rates and a reduction in income recognized from the transition services (“TSA Services”) agreement with Worldpac. Income Tax Expense (Benefit) For the twelve weeks ended July 18, 2026, the Company's provision for income taxes reflected an expense of $20 million as compared to an expense of $6 million for the same period during 2025. For the twenty-eight weeks ended July 18, 2026, the Company’s provision for income taxes reflected an expense of $30 million compared with an income tax benefit of $149 million for the same period in 2025. The income tax benefit in fiscal 2025 resulted from a net discrete tax benefit in the first quarter of fiscal 2025 of $126 million, related to an internal legal entity restructuring event completed in the fiscal year treated as a taxable stock disposition for U.S. federal income tax purposes. As a result, the Company recognized a capital loss deduction which was utilized against capital gain income. 21 Table of Contents Liquidity and Capital Resources Overview The Company’s principal sources of liquidity are cash and cash equivalents and borrowing availability under the asset-based loan revolving credit facility (the "ABL facility"). The Company’s primary cash requirements necessary to maintain the Company’s current operations include payroll and benefits, inventory purchases, contractual obligations, capital expenditures, payment of income taxes, funding of initiatives and other operational priorities, such as restructuring and asset optimization plans. In addition, cash is required to pay the Company’s dividends and to pay interest and principal on the Company’s long-term debt when due. The following table presents selected financial information related to the Company’s liquidity (in millions): July 18, 2026 January 3, 2026 Change Cash and cash equivalents $ 3,120 $ 3,123 $ (3 ) ABL Facility borrowing availability 894 896 (2 ) Cash and cash equivalents was relatively flat, as net cash provided by operating activities of $252 million was offset by $131 million used for purchases of property and equipment, net of proceeds from sales; the final working capital payment made related to the Company's sale of Worldpac totaling $55 million; the payment of $30 million in dividends; and the repayment of $29 million of long-term debt. The Company believes that its cash and cash equivalents and sources of liquidity will satisfy its working and other capital requirements for at least the next 12 months and thereafter for the foreseeable future. Analysis of Cash Flows The Company’s cash flows from operating, investing and financing activities were as follows (in millions): Twenty-Eight Weeks Ended (in millions) July 18, 2026 July 12, 2025 Net cash provided by (used in) operating activities $ 252 $ (106 ) Net cash used in investing activities of continuing operations (133 ) (75 ) Net cash used in investing activities of discontinued operations (55 ) — Net cash used in financing activities (66 ) (32 ) Effect of exchange rate changes on cash (1 ) 1 Net decrease in cash and cash equivalents $ (3 ) $ (212 ) Operating Activities For the twenty-eight weeks ended July 18, 2026, cash provided by operating activities changed favorably by $358 million compared with the same period of prior year. The increase as compared to the comparative period was due to lower cash charges related to the 2024 Restructuring Plan and other changes in net working capital. Investing Activities For the twenty-eight weeks ended July 18, 2026, cash flows used in investing activities of continuing operations increased by $58 million compared with the twenty-eight weeks ended July 12, 2025, with higher spend on property and equipment in the current period, partially offset by lower proceeds from the sale of property and equipment. Net cash used in investing activities of discontinued operations for the twenty-eight weeks ended July 18, 2026, increased by $55 million compared with the twenty-eight weeks ended July 12, 2025, due to the timing of the final working capital payment made related to the Company's sale of Worldpac. 22 Table of Contents Financing Activities For the twenty-eight weeks ended July 18, 2026, cash flows used in financing activities increased by $34 million compared with the twenty-eight weeks ended July 12, 2025. The increase in cash used in financing activities was due to the repurchase of outstanding principal related to the 2027 Notes and 2028 Notes. The Company’s Board of Directors has declared a cash dividend every quarter since 2006. Any payments of dividends in the future will be at the discretion of the Company’s Board of Directors and will depend upon the Company’s results of operations, cash flows, capital requirements and other factors deemed relevant by the Board of Directors. The Company’s ABL Facility has certain restrictions that may limit its ability to increase the amount of cash dividends above its current levels. Long-Term Debt As of July 18, 2026 and January 3, 2026, the Company had outstanding principal of long-term debt totaling $3.4 billion and $3.5 billion, respectively. For further details, see Note 5. Long-term Debt and Fair Value of Financial Instruments, of the Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1. Credit Facilities The ABL Facility provides for a five-year senior secured first lien asset-based revolving credit facility of up to $1 billion with an uncommitted accordion feature that provides for additional credit extensions up to $500 million. In accordance with the ABL Facility, the Company is required to hold cash and cash equivalents in designated accounts with lenders, referred to as Qualified Cash Accounts as defined in the ABL Facility. As of July 18, 2026 and January 3, 2026, approximately $2.3 billion of cash and cash equivalents was designated as qualified cash and are subject to customary “springing” control agreements, as described in the ABL Facility Agreement. As of July 18, 2026 and January 3, 2026, the Company had no outstanding borrowings under its ABL Facility. As of July 18, 2026 and January 3, 2026, the Company had $894 million and $896 million of borrowing availability, respectively, and $106 million and $104 million letters of credit outstanding, respectively, under the ABL Facility. As of July 18, 2026 and January 3, 2026, the Company had no bilateral letters of credit issued separately from the ABL Agreement. For further details, see Note 5. Long-term Debt and Fair Value of Financial Instruments, of the Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1. Additional Capital Requirements Expected working and other capital requirements, including Contractual and Off-Balance Sheet Obligations are described in the Company’s 2025 Form 10-K in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” As of July 18, 2026, other than for the changes disclosed in the “Notes to the Condensed Consolidated Financial Statements”, and “Liquidity and Capital Resources” in this Quarterly Report, there have been no other material changes to the Company’s expected working and other capital requirements described in the Company’s 2025 Form 10-K. 23 Table of Contents