Valvoline (NYSE:VVV) kicked off its fiscal 2026 with a massive expansion of its retail footprint, navigating a mandated Federal Trade Commission (FTC) divestiture to post double-digit growth in its core operating metrics.
The Lexington, Kentucky-based company reported Wednesday that system-wide store sales climbed 13% to $924 million for the first quarter ended Dec. 31, 2025.
Revenue grew 11% to $462 million, a figure that rises to 15% when adjusting for recent refranchising initiatives.
Performance was bolstered by a healthy 5.8% increase in system-wide same-store sales (SSS), marking a strong start to the new year.
The quarter was defined by the closing of the Breeze Autocare acquisition, which added a net 162 stores to Valvoline's network.
The total number of system-wide store additions reached 200 during the period.
However, the transaction came with regulatory strings; Valvoline was required by the FTC to divest 45 "Breeze" locations (operating as Oil Changers) to resolve antitrust concerns in markets where the two brands overlapped.
This mandated sale contributed to a GAAP loss from continuing operations of $32 million, or 25 cents per share.