Total Revenue

+2.4% (from $3.859B to $3.952B)

Revenue grew modestly in Q2 2025, likely reflecting continued momentum from earlier period initiatives such as same-store sales and new store contributions, though at a slower pace than in some prior quarters where stronger international and domestic performance was noted. " "

Operating Income

~5% decline (from $743.2M to $706.8M)

Operating income decreased despite revenue growth, suggesting rising cost pressures and margin compression. Similar to earlier period challenges, increased operating/SG&A expenses and possibly FX headwinds contributed to lower profitability. " "

Net Income

5.3% decline (from ~$515.0M to $487.9M)

Net income dropped in line with the operating income decline, likely due to the cumulative effects of higher operating expenses and cost pressures overcoming modest sales growth, as also seen in previous quarters where unfavorable exchange rate impacts and increased expenses were noted. " "

EPS

Basic EPS from $29.78 to $29.08; Diluted EPS from $28.93 to $28.31

EPS fell slightly, reflecting the decline in net income. Although share repurchase programs in past periods helped boost EPS, the lower profitability this period combined with a lesser reduction in share count has resulted in marginal EPS decreases. " "

Foreign Currency Impact – Revenue

Q3 2025

no prior guidance

$106 million drag on revenue "

no prior guidance

Foreign Currency Impact – EBIT

Q3 2025

no prior guidance

$34 million drag on EBIT "

no prior guidance

Foreign Currency Impact – EPS

Q3 2025

no prior guidance

$1.41 per share drag on EPS "

no prior guidance

Tax Rate

Q3 2025

no prior guidance

23.2% "

no prior guidance

Sales Trends

Q3 2025

no prior guidance

Expect both DIY and commercial sales trends to improve "

no prior guidance

Foreign Currency Impact – Revenue

Q4 2025

no prior guidance

$101 million drag on revenue "

no prior guidance

Foreign Currency Impact – EBIT

Q4 2025

no prior guidance

$37 million drag on EBIT "

no prior guidance

Foreign Currency Impact – EPS

Q4 2025

no prior guidance

$1.53 per share drag on EPS "

no prior guidance

Store Openings (Mega-Hub)

Q4 2025

no prior guidance

Plan to open at least 19 more Mega-Hub locations "

no prior guidance

Foreign Currency Impact – Revenue

FY 2025

no prior guidance

$356 million impact on revenues "

no prior guidance

Foreign Currency Impact – EBIT

FY 2025

no prior guidance

$18 million impact on EBIT "

no prior guidance

Foreign Currency Impact – EPS

FY 2025

no prior guidance

$4.82 per share impact on full-year EPS "

no prior guidance

Store Openings (International)

FY 2025

around 100 international stores (Q1 2025)

around 100 International stores "

no change

Hubs and Mega-Hubs Expansion

Consistently discussed across Q3 and Q4 2024 as a key strategic growth initiative, with emphasis on ambitious build‐out targets, significant pipeline numbers, and challenges around location and execution. " " " " " " " "

Q2 2025 highlights plans to open 19 more Mega-Hubs in the back half of the fiscal year, with a pipeline of 91 and a full build-out target of close to 300, reinforcing the focus on improved inventory availability and faster delivery. " " " "

Steady and robust expansion narrative. The focus remains strong, with consistent commitment despite prior execution challenges. The emphasis now is on scaling and further optimization aided by technology.

Inventory Optimization & Execution

Detailed in Q3 and Q4 2024 with discussions on forward deployment of inventory, improving store assortments and speed to customer improvements, despite execution challenges. " " " " " "

Q2 2025 emphasizes significant investments in assortment strategies and technology to boost in-stock levels (not seen since early 2020) and improve fulfillment, despite ongoing execution challenges. " " "

Consistent focus with a positive tone. The narrative remains on track with continuous investments leading to improved operational execution and customer service.

Commercial Market Share Growth

Addressed in Q3 and Q4 2024 as a major growth opportunity in an underpenetrated segment, noting current market share below 5% and improvements in specific segments like national accounts. " " "

Q2 2025 highlights that AutoZone holds 5% market share in a large commercial market, with significant room for growth as competitors account for only about 20% of the market, indicating a vast opportunity ahead. "

Recurring opportunity with bullish sentiment. The consistent narrative underscores a major growth catalyst for the company in the commercial space regardless of minor shifts in specific segment performance.

Aging Vehicle Fleet

Consistently mentioned across Q3 and Q4 2024 as a tailwind, with the growing and aging car park driving demand for maintenance and aftermarket parts. " "

Q2 2025 reiterates that an aging fleet—with an average age of 12.6 years increasing—remains a significant driver for maintenance and aftermarket parts demand. "

Stable positive trend. This tailwind continues to be a key enabler for demand and is expected to sustain upward momentum for aftermarket sales.

Accelerated SG&A Investments & Margin Management

In Q4 2024, the focus was on disciplined SG&A investments with investments in IT and payroll while maintaining stable operating margins; Q3 2024 discussed managing SG&A in line with sales growth. " " "

Q2 2025 reports an accelerated pace in SG&A spending to support both DIY and Commercial growth, along with evolving margin management concerns partly driven by commercial business expansion and a lack of repeat LIFO benefits. " " " "

Slightly cautious yet growth-oriented. While the commitment to invest remains strong, there is increased attention to margin pressures—reflecting a cautious adjustment amid faster SG&A investment.

Gross Margin Pressures

Q3 2024 noted margin improvements partly from merchandising and supply chain initiatives yet flagged future moderation due to normalization of inflation; Q4 2024 cited LIFO headwinds and a modest margin improvement. " " " "

Q2 2025 discusses pressures from higher freight costs, inflation and mix shifts, although these are partly offset by merchandise margin improvements and strategic responses. "

Persistent challenge with mitigating actions. The pressures remain a consistent concern; however, proactive measures through operational efficiencies are making a difference, although sentiment remains cautious.

Foreign Exchange Volatility

In Q4 2024, FX volatility was acknowledged with significant headwinds on international sales, though Q3 2024 did not elaborate on this topic. " " " "

Q2 2025 provides more detailed discussion on FX volatility, especially with the Mexican peso weakening by 19% against the USD, leading to substantial quantitative headwinds on sales, EBIT, and EPS. " " "

Increasingly material concern. While historically addressed, FX issues are now more pronounced and carry significant financial implications, leading to a more negative sentiment compared to prior periods.

Tariff Impacts

In Q4 2024, tariffs were mentioned in a more general context with cost pass-through mechanisms, while Q3 2024 did not focus on this issue. "

Q2 2025 offers specific insights into how higher new and used car prices (driven by tariffs) encourage consumers to hold on to their vehicles, thus benefiting the aftermarket parts segment. " " "

Emerging focus with mixed implications. Although tariffs can present challenges in cost management, the resultant consumer behavior (longer vehicle retention) is seen as a tailwind for aftermarket demand, leading to a cautiously positive outlook.

Speed Initiative

Q3 2024 described the rollout of a speed initiative using technology (e.g., handheld devices) to improve customer service and speed, and Q4 2024 emphasized “speed to shop” improvements from Hubs and Mega-Hubs. " " "

Q2 2025 reiterates the focus on improving delivery times and customer service by leveraging technology and the strategic deployment of Hubs and Mega-Hubs, particularly for hard-to-find parts. "

Continued positive momentum. The initiative remains central to enhancing customer satisfaction and operational efficiency, and its steady deployment reinforces a positive sentiment that is expected to drive future sales growth.

Underperformance in Discretionary DIY

Q3 2024 noted that discretionary DIY categories underperformed relative to hard parts, while Q4 2024 detailed a prolonged underperformance due to economic headwinds. " " "

Q2 2025 confirms that discretionary DIY categories remain weak, showing the lowest performance across domestic DIY sales and a reduction in their sales mix, pending economic relief and improved consumer confidence. "

Consistently negative. Economic pressures are repeatedly impacting discretionary segments, and the sentiment remains cautious until broader economic relief or enhanced consumer confidence is observed.

Emerging LIFO Credit Headwinds

Consistently raised in Q3 and Q4 2024 as a near-term operational risk, with discussions of significant LIFO credits that are expected to reverse and impose headwinds on gross margins. " " "

Q2 2025 indicates that the absence of prior LIFO credits (e.g. a $24 million credit not expected to repeat) along with cumulative LIFO charges yet to be reversed will create near-term margin headwinds. " "

Stable risk with cautious sentiment. The recurring mention of LIFO credit headwinds underscores an ongoing near-term operational risk, with management actively preparing for reduced benefits moving forward.