AZO

AutoZone Reports 3.5% Increase in Net Sales

AutoZone, Inc. has reported a 3.5% increase in net sales, reaching $4.2 billion for the third quarter ended May 4, 2024, compared to the same period in fiscal 2023. The company's same store sales for its domestic and international stores open at least one year are as follows: domestic same store sales were flat, while international same store sales increased by 18.1% in constant currency and 9.3% excluding the impact of foreign exchange rates. This resulted in a total company same store sales increase of 0.9%.

Gross profit as a percentage of sales increased by 102 basis points to 53.5%, primarily driven by higher merchandise margins and a 15 basis point non-cash LIFO (Last In, First Out) favorability. Operating expenses, as a percentage of sales, were 32.2% versus last year at 31.5%, driven primarily by higher store payroll as a percentage of sales.

Operating profit increased by 4.9% to $900.2 million, and net income for the quarter was $651.7 million compared to $647.7 million in the same period last year. Diluted earnings per share increased by 7.5% to $36.69. The company also repurchased 242 thousand shares of its common stock at an average price per share of $3,036, totaling $734.7 million.

During the quarter, AutoZone opened 32 new stores in the U.S., 12 in Mexico, and one in Brazil, resulting in a total store count of 7,236 as of May 4, 2024. The company remains committed to its disciplined approach of increasing operating earnings and cash flow, and delivering strong shareholder value.

AutoZone will host a conference call to discuss its third quarter results and has provided non-GAAP measures, including adjustments to reflect return on invested capital, adjusted debt, and adjusted debt to earnings before interest, taxes, depreciation, amortization, rent, and share-based expense. These measures are aimed at providing more clarity on the company's comparative year-to-year operating results. As a result of these announcements, the company's shares have moved -3.6% on the market, and are now trading at a price of $2818.83. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS