AutoZone reported solid sales growth driven by strong domestic and international store performance and aggressive store openings. However, gross margins declined due to a significant LIFO impact, and operating expenses rose as a percentage of sales due to investments in growth initiatives.
Total company net sales increased 8.2% to $4.6 billion.
positiveDomestic same store sales increased 4.8%.
positiveInternational same store sales increased 11.2% (3.7% in constant currency).
positiveOpened 53 net new stores globally, with plans for aggressive expansion.
positiveDomestic commercial sales increased 14.5%.
positiveGross profit as a percentage of sales decreased by 203 basis points to 51.0%, driven by a 212 basis point non-cash LIFO impact.
negativeOperating expenses as a percentage of sales increased to 34.0% from 33.3% due to investments in growth initiatives.
attentionOperating profit decreased 6.8% to $784.2 million.
negativeNet income decreased to $530.8 million from $564.9 million in the prior year.
negativeDiluted EPS decreased to $31.04 from $32.52 in the prior year.
negativeInventory increased 13.9% over the same period last year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Thank AutoZoners for delivering another quarter of strong sales growth.
Domestic and International businesses performed well, executing on growth initiatives.
Pleased to open 53 net new stores globally and plan to aggressively open stores.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.