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AutoZone, Inc. is the leading retailer and distributor of automotive replacement parts and accessories in the Americas, with operations in the U.S., Mexico, and Brazil . The company offers a wide range of products for cars, sport utility vehicles, vans, and light-duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products . AutoZone's business is divided into two primary segments: Auto Parts Stores and Other, which includes ALLDATA and E-commerce . The company's sales are primarily driven by failure and maintenance-related categories, which together accounted for approximately 86% of total sales in fiscal 2024 . AutoZone also provides commercial sales programs and sells products through its websites, including www.autozone.com and www.autozonepro.com, but does not derive revenue from automotive repair or installation services .
- Auto Parts Stores - Operates retail locations offering a comprehensive selection of automotive replacement parts, maintenance items, and accessories for various vehicles.
- Other - Encompasses ALLDATA, a provider of automotive diagnostic and repair software, and E-commerce platforms for online sales of automotive products.
- Given that your domestic DIY comp was down 1.1% for the quarter, and discretionary categories have been under significant pressure for at least a year, what specific strategies are you implementing to stimulate growth in the DIY segment and offset these declines?
- With a $32 million headwind on sales and $8 million on EBIT this quarter due to foreign exchange rates, how do you plan to mitigate the impact of FX on your international business, especially as you continue expanding in markets like Mexico and Brazil?
- You've invested over $1 billion in CapEx in FY '24 and plan similar investments in FY '25, particularly in new Hubs, Mega-Hubs, and distribution centers; can you provide clarity on the expected return on these investments and the timeline for them to materially contribute to earnings growth?
- Despite opening new commercial programs, average weekly sales per program remained flat at $16,700; what challenges are preventing growth in sales per program, and how do you plan to accelerate your commercial business to meet your growth objectives?
- Considering the difficulty in achieving your long-term EPS growth algorithm in the near term due to factors like LIFO and FX headwinds, what specific measures are you taking to return to double-digit EPS growth, and how will you drive margin expansion in this challenging environment?
Competitors mentioned in the company's latest 10K filing.
- National, regional and local auto parts chains
- Independently owned parts stores
- Online automotive parts stores or marketplaces
- Wholesale distributors
- Jobbers
- Repair shops
- Car washes
- Auto dealers
- Discount and mass merchandise stores
- Hardware stores
- Supermarkets
- Drugstores
- Convenience stores
- Home stores
- Other retailers that sell aftermarket vehicle parts and supplies, chemicals, accessories and tools
Recent developments and announcements about AZO.
Financial Reporting
Earnings Report
AutoZone, Inc. has released its earnings results for the first quarter of fiscal 2025, ending November 23, 2024. Net sales for the quarter were $4.3 billion, marking a 2.1% increase from the same period in fiscal 2024 . The company's same store sales increased by 1.8% on a constant currency basis, with domestic same store sales rising by 0.3% and international same store sales by 13.7% .
Gross profit as a percentage of sales was 53.0%, an increase of 16 basis points from the previous year, driven by higher merchandise margins. However, operating profit decreased by 0.9% to $841.1 million. Net income for the quarter was $564.9 million, down from $593.5 million in the same period last year, and diluted earnings per share were $32.52, slightly lower than last year's $32.55 .
AutoZone's inventory increased by 8.7% compared to the same period last year, and the company opened 34 new stores during the quarter, including 23 in the U.S., six in Mexico, and five in Brazil, bringing the total store count to 7,387 .
The company repurchased 160 thousand shares of its common stock during the quarter at an average price of $3,156 per share, totaling an investment of $505.2 million. AutoZone has $1.7 billion remaining under its current share repurchase authorization .
AutoZone's CEO, Phil Daniele, expressed satisfaction with the quarter's results, highlighting improvements in DIY same store sales and domestic commercial sales, which increased by 3.2%. The company remains focused on growth initiatives and improving customer service to enhance market share .