Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

AZO

AutoZone (AZO) Reports Strong Q4 Results - Sales Up 5.6%

AutoZone reported fourth-quarter net sales of $6.6 billion, up 5.6% from the same quarter a year earlier, as same-store sales rose 1.5% for the total company and 1.6% domestically.

Gross profit margin expanded to 53.3% from 51.5% a year ago, a gain of 182 basis points. Operating expenses rose to 33.4% of sales from 32.4%, while operating profit increased 10.1% to $1.3 billion.

Net income for the 16-week quarter climbed to $931.6 million from $837.0 million, and diluted earnings per share rose to $56.05 from $48.71.

For the full fiscal year, sales increased 7.4% to $20.3 billion. Same-store sales rose 4.5% for the total company and 3.3% domestically. International same-store sales jumped 13.5% for the year, or 2.2% on a constant-currency basis.

Full-year gross margin slipped to 52.3% from 52.6%, while operating expenses increased to 34.0% of sales from 33.6%. Operating profit rose 3.1% to $3.7 billion. Net income increased 3.0% to $2.6 billion, and diluted EPS climbed 5.3% to $152.55 from $144.87.

AutoZone repurchased 223,000 shares in the quarter for $697.5 million at an average price of $3,125 per share. For the full year, it bought back 579,000 shares for $2.0 billion at an average price of $3,496 per share.

Inventory increased 10.1% from a year earlier. Net inventory per store improved to negative $107,000 from negative $131,000 a year ago and was unchanged from the prior quarter.

The company opened 175 stores in the quarter, including 97 in the U.S., 68 in Mexico and 10 in Brazil. Full-year openings totaled 374 stores. At quarter-end, AutoZone operated 8,031 stores, up from 7,657 a year earlier. Following these announcements, the company's shares moved 4.0%, and are now trading at a price of $2915.34. 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