AutoZone reports 5.4% net sales increase

By Ahmed Jameison • Tuesday, May 27 15:22 • Permanent Link

AutoZone, Inc. has reported a 5.4% increase in net sales to $4.5 billion for the third quarter ended May 10, 2025, compared to the same period in fiscal 2024. Domestic same store sales increased by 5.0%, while international same store sales experienced a decline of 9.2% due to currency rate fluctuations. The total company's same store sales grew by 3.2%.

Gross profit as a percentage of sales decreased by 77 basis points to 52.7%, impacted by higher inventory shrink, a higher commercial mix, new distribution center startup costs, and a non-cash LIFO impact. Operating expenses as a percentage of sales increased to 33.3% from 32.2% in the prior year.

Operating profit decreased by 3.8% to $866.2 million, while net income for the quarter decreased by 6.6% to $608.4 million. Diluted earnings per share also decreased by 3.6% to $35.36.

During the quarter, AutoZone repurchased 70 thousand shares of its common stock for a total investment of $250.3 million, leaving $1.1 billion remaining under its current share repurchase authorization. The company's inventory increased by 10.8% over the same period last year, driven by new store growth and same store sales growth initiatives.

AutoZone opened 54 new stores in the U.S., 25 in Mexico, and five in Brazil during the quarter, bringing the total store count to 7,516 as of May 10, 2025.

In terms of outlook, Phil Daniele, President and CEO of AutoZone, expressed excitement about the company's momentum heading into the last quarter of the fiscal year and its preparedness for the summer selling season. The company remains committed to achieving its targeted return on capital for each investment and delivering strong shareholder value.

The company will host a conference call to discuss its third-quarter results, and the call will be webcast on the company's website. Additionally, a telephone replay will be available for those who cannot participate in the live call.

AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas, with a significant presence in the U.S., Mexico, and Brazil. As a result of these announcements, the company's shares have moved -4.02% on the market, and are now trading at a price of $3672.725. If you want to know more, read the company's complete 8-K report here.

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