AUTOZONE (AZO) Company Report

The DIY-focused consumer remains resilient despite high new car (> $50k avg) and used car (> $500 monthly) costs, with no observed trade-downs and an increasing 12.8-year vehicle parc.
AutoZone’s break-fix model and inelastic demand allow disciplined price increases to offset inflation and tariff impacts, with retail pricing expected to rise over the next few quarters and margins expanding on subsequent deflation.
Commercial segment mix in the U.S. rose from ~20% to 33% through local market expansion, including mega hubs (aiming for ~300 total) and a dedicated sales force, capturing share in a ~$100 billion market.
Mexican operations comprise ~900 stores with potential to double in size over the next decade, benefiting from an older vehicle parc, higher gross margins, and lower labor costs.
Sourcing diversification has cut China direct imports from ~85–90% to ~60%, shifting volume to Turkey and India, with plans to further reduce China reliance and maintain margin structure.

Nov 4, 2025, 7:30 PM

Transcript

AutoZone presents at 49th Annual Automotive Symposium

AZO

DIY demand remains stable as consumers hold onto vehicles longer (average age 12.8 years) with high new/used car prices, and no significant trade-downs in good-better-best product mix; unemployment at 4.3%, supporting resilience despite volatility.
AutoZone’s break-fix model allows disciplined pricing in relatively inelastic maintenance categories; further retail price inflation expected over the next few quarters due to tariffs, with potential margin expansion on subsequent deflation.
The commercial segment has grown to about 33% of U.S. mix (from ~20% five years ago), now at a $5 billion run rate, driven by increased local inventory via hubs/mega hubs and a professional sales force.
In Mexico, AutoZone operates ~900 stores with plans to double its footprint over the next decade, benefiting from an older vehicle parc, strong gross margins, and lower labor costs.
Sourcing diversification has reduced direct imports from China from 85–90% to ~60%, shifting volumes to Turkey and India to mitigate tariff impacts and maintain pricing discipline.

Nov 4, 2025, 7:30 PM

Transcript

AutoZone presents at 49th Annual Automotive Symposium

AZO

New Projects/Investments

Consumers remain resilient, maintaining vehicles longer (average age 12.8 years) and showing no significant trade-downs despite high new car prices (>$50,000) and used car payments (>$500/month) over the past year.
Ongoing inflation and tariffs are expected to accelerate over the next few quarters, but AutoZone’s inelastic break-fix mix (≈85% of sales) and disciplined pricing strategy support stable gross margins and higher profit dollars.
Focus on commercial growth has raised its share to about 33% of U.S. sales (from ~20% five years ago), driven by local inventory hubs and mega-hubs carrying ~100,000 SKUs to boost market share and service levels.
Mexican operations approach 900 stores, delivering U.S.-comparable productivity and gross margins, with potential to double footprint over the next decade amid an older vehicle fleet tailwind.

Nov 4, 2025, 7:30 PM

Transcript

AutoZone authorizes additional share repurchase

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Share Buyback

Board Change

Executive Compensation

Board authorized an additional $1.5 billion share repurchase, raising total authorizations since 1998 to $40.7 billion.
Approved transition of William C. Rhodes III from Executive Chairman to Chairman, effective January 2026, with $250,000 in annually vested restricted stock units.

Oct 8, 2025, 9:01 PM

8-K

AutoZone authorizes additional share repurchase

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Share Buyback

AutoZone’s Board approved an additional $1.5 billion in share repurchases, bringing total authorizations to $40.7 billion since the program’s inception in 1998.
CFO Jamere Jackson emphasized the company’s disciplined capital allocation—generating strong free cash flow, investing in growth and maintaining investment-grade credit ratings.
As of August 30, 2025, AutoZone operated 7,657 stores globally: 6,627 in the U.S., 883 in Mexico and 147 in Brazil.

Oct 8, 2025, 9:00 PM

Press Release

AutoZone reports Q4 FY 2025 earnings

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Earnings

Share Buyback

AutoZone posted Q4 FY 2025 net sales of $6.24 billion (+0.6% YoY) and GAAP net income of $837 million (–7.2%), with diluted EPS of $48.71 (–5.6%).
Total Company Same Store Sales rose 5.1%, including Domestic SSS up 4.8% and International SSS up 7.2% on a constant currency basis.
The company repurchased $447 million of common stock in the quarter, driving a 1.8% reduction in diluted shares outstanding versus Q4 FY 2024.
LIFO and foreign exchange challenges negatively impacted EPS by $3.57 and $0.57, respectively.

Sep 23, 2025, 2:00 PM

Presentation

AutoZone reports Q4 2025 earnings results

AZO

Earnings

Guidance Update

Share Buyback

AutoZone’s total sales grew 0.6% y/y (16-week comp 6.9%) while EPS declined 5.6%; excluding a $80 M LIFO charge, EPS would have risen 8.7%.
Q4 same-store sales rose 5.1% (domestic +4.8%, with DIY +2.2% and commercial +12.5%) and international constant-currency comps were +7.2% despite a 5-point FX headwind.
Opened 90 net U.S. and 51 international stores (ending Q4 with 1,030 international), totaling 304 net new stores in FY25; targeting 325–350 new stores in FY26 with ~$1.5 B CapEx.
Gross margin of 51.5% was down 103 bps y/y (16-week) including a 128 bps LIFO headwind; excluding LIFO and the extra week, margin improved 25 bps.
Repurchased $447 M of stock in Q4, with $632 M remaining under the buyback authorization.

Sep 23, 2025, 2:00 PM

Transcript

AutoZone reports Q4 FY2025 results

AZO

Earnings

Share Buyback

AutoZone delivered Q4 net sales of $6.24 billion, up 0.6% year-over-year (adjusted +6.9%), with Total Company same-store sales increasing 5.1% on a constant currency basis and Domestic same-store sales up 4.8%.
Diluted EPS for the quarter was $48.71, a 5.6% decline versus the prior year period.
Q4 net income totaled $836.95 million, down from $902.21 million in Q4 FY2024.
For fiscal 2025, AutoZone reported annual net sales of $18.94 billion, a 2.4% increase, and diluted EPS of $144.87, a 3.1% decrease.
During Q4, the company repurchased 117 thousand shares at an average price of $3,821 ($446.7 million), bringing fiscal-year repurchases to 447 thousand shares for $1.5 billion and leaving $632.3 million of authorization remaining.

Sep 23, 2025, 10:55 AM

8-K

AutoZone poised to weather tariff-driven price pressures

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Oppenheimer’s Brian Nagel identifies auto parts retailers as best positioned to offset rising tariffs due to strong pricing power and low price transparency.
AutoZone has begun to selectively lift prices to mitigate the impact of escalating tariffs.
Home improvement peers Home Depot and Lowe’s also possess significant pricing power and are likely to selectively increase prices as tariffs rise.
Consumers are pre-buying ahead of anticipated tariff-driven price increases, boosting demand in categories like home furnishings alongside auto parts.

Aug 15, 2025, 6:19 PM

CNBC Television

AutoZone Reports Q3 2025 Earnings Results

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Earnings

Revenue Acceleration/Inflection

Share Buyback

Total sales reached $4.5 billion, up 5.4% with domestic same-store sales growing 5% and international constant currency comps up 8.1%.
EPS declined 3.6% to $35.36, impacted by FX headwinds such as a $1.10 per share drag and other cost pressures.
Domestic commercial sales surged 10.7% to $1.3 billion, reflecting strong momentum from initiatives like expanded programs and mega hubs.
The company remains focused on growth and disciplined capital allocation, highlighted by a $250 million share repurchase and plans to invest approximately $1.3 billion in CapEx.

May 27, 2025, 6:16 PM

Earnings Transcripts

Quarterly earnings call transcripts for AUTOZONE.

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