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    Victoria O • Bank of America

    Victoria O's questions to Autozone Inc (AZO) leadership

    Victoria O's questions to Autozone Inc (AZO) leadership • Q3 2025

    Question

    Victoria O, on for Robbie Ohmes at Bank of America, inquired about any sales lift from the new distribution centers in California and Virginia and asked if current inventory levels are now considered optimal.

    Answer

    CEO Philip Daniele clarified that the new DCs are still ramping up, with the primary goal being long-term supply chain cost reduction rather than an immediate sales lift. He explained that the 10% total inventory growth was a deliberate investment to enhance assortments for the commercial and international businesses, particularly to support hub and mega hub strategies.

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    Victoria O's questions to Autozone Inc (AZO) leadership • Q3 2025

    Question

    Victoria O, on behalf of Robbie Ohmes at Bank of America, inquired about the sales lift and competitive response from the new distribution centers in California and Virginia, and asked if current inventory levels are now at a comfortable point.

    Answer

    CEO Philip Daniele explained that the new DCs have just opened and are still in the process of ramping up, with the primary benefit being reduced long-term supply chain costs rather than an immediate sales lift. Regarding inventory, he noted the 10% total increase was a deliberate investment to refine assortments for the commercial business and support international growth, implying it was a strategic choice.

    Ask Fintool Equity Research AI