Q1 2024 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$2770.46Last close (Feb 26, 2024)
Post-Earnings Price$2850.00Open (Feb 27, 2024)
Price Change
$79.54(+2.87%)
- Significant Growth Potential in Commercial Segment: AutoZone plans to return to double-digit growth in its commercial business over time, leveraging its low current market share of 4%-5% and the maturation of new stores opened in the last five quarters. The company believes it can expand market share as execution improves.
- Strong International Performance with Margin Expansion: The company's international operations, particularly in Mexico, are showing healthy gross margins and an attractive operating margin structure. In Brazil, though currently in an investment phase with operating losses, aggressive expansion is expected to unlock significant margin benefits as stores mature.
- Retention of Elevated Retail Volumes Post-Pandemic: Despite industry expectations of a decline in DIY sales, AutoZone has retained about 85% of the market share gained during the pandemic when retail volumes increased by 25%-30%. The company is pleased with maintaining these elevated volumes and continues to focus on growing the retail business.