AUTOZONE INC (AZO) Earnings History

AUTOZONE INC - Q2 FY2026 EarningsMissed

Filed at: Mar 3, 2026, 6:55 AM EST|Read from source

EXECUTIVE SUMMARY

AutoZone reported solid financial results with an 8.1% increase in net sales, driven by strong domestic same-store sales growth in both DIY and Commercial segments. Despite a decrease in gross margin due to a LIFO charge and operating expense deleverage, the company continues to focus on market share gains and disciplined earnings growth.

POSITIVE HIGHLIGHTS

  • •

    Total company net sales increased 8.1% to $4.3 billion.

    positive
  • •

    Domestic same store sales increased 3.4% for the quarter and 4.2% year-to-date.

    positive
  • •

    Commercial sales increased 9.8% for the quarter and year-to-date.

    positive
  • •

    Opened 64 net new stores globally in the quarter, in line with expectations to open approximately 350-360 stores for the full fiscal year.

    positive
  • •

    Company's inventory levels on a per store basis were negative $105 thousand, indicating efficient inventory management relative to payables.

    positive

CONCERNS & RISKS

  • •

    Gross profit margin decreased by 137 basis points to 52.5%, driven by a 138 basis point non-cash LIFO charge.

    attention
  • •

    Operating expenses as a percentage of sales increased to 36.1% from 36.0% due to investments supporting growth initiatives, leading to operating profit decrease of 1.2%.

    attention
  • •

    Net income decreased to $468.9 million from $487.9 million in the prior year.

    negative
  • •

    Diluted earnings per share decreased to $27.63 from $28.29 in the prior year.

    negative
  • •

    International same store sales in constant currency were slightly below expectations.

    attention
  • •

    Merchandise inventories increased 13.1% over the same period last year.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$4.27B
+8.1%
Prior year: $3.95B
Annual (YTD)
$8.90B
N/A
Prior year: $8.23B
Net Income
Quarterly
$468.86M
-3.9%
Prior year: $487.92M
Annual (YTD)
$999.68M
N/A
Prior year: $1.05B
EPS (Diluted)
Quarterly
$27.63
-2.3%
Prior year: $28.29
Operating Income
Quarterly
$698.46M
-1.2%
Prior year: $706.77M
Annual (YTD)
$1.48B
N/A
Prior year: $1.55B
EPS (Basic)
Quarterly
$28.29
-2.6%
Prior year: $29.06

MARGIN ANALYSIS

Gross Margin
Current Quarter
52.5%
Prior Year
53.8%
YoY Change
-133 bps
Operating Margin
Current Quarter
16.3%
Prior Year
17.9%
YoY Change
-154 bps
Net Margin
Current Quarter
11.0%
Prior Year
12.3%
YoY Change
-138 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q2 FY2026 2026

VISUAL OVERVIEW

|
Domestic
0.0%
N/A
CC: +3.4%
International
0.0%
N/A
CC: +2.5%
Total Company
0.0%
N/A
CC: +3.3%

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
Domestic
N/A———+3.4%
International
N/A———+2.5%
Total Company
N/A———+3.3%
Total Revenue$0.00M——100.0%—

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

MANAGEMENT COMMENTARY

Thank you to our AutoZoners for delivering solid financial results this past quarter.

— AUTOZONE INC, Q2 FY2026 2026 Earnings Call

We continue to be pleased with our strategies to grow sales.

— AUTOZONE INC, Q2 FY2026 2026 Earnings Call

Domestically, both DIY and Commercial sales continued to perform well this past quarter in spite of winter storms causing disruptions.

— AUTOZONE INC, Q2 FY2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Domestic Commercial Sales
1154.8M
+9.8% YoY
Prior year: 1051.8M
dollars
Stores Opened Net
64
+42.2% YoY
Prior year: 45
stores
Total Store Count
7.8K
+4.6% YoY
Prior year: 7.4K
stores

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.