| Metric (Unit)                       | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|-------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| After-tax ROIC (%)                  | **54.3**  **[0001558370-22-018835_azo-20221119x10q.htm:19]**  | **54.7**  **[0001558370-23-004115_azo-20230211x10q.htm:23]**  | **55.2**  **[0001558370-23-010958_azo-20230506x10q.htm:23]**  | **55.4**  **[0001558370-23-016668_azo-20230826x10k.htm:46]**  | **55.0**  **[0001558370-23-019871_azo-20231118x10q.htm:21]**  | **53.5**  **[0001558370-24-003413_azo-20240210x10q.htm:25]**  | **51.4**  **[0001558370-24-009005_azo-20240504x10q.htm:25]**  | **49.7**  **[0001558370-24-013758_azo-20240831x10k.htm:42]**  |
| Debt to EBITDAR (Ratio)             | **2.2**  **[0001558370-22-018835_azo-20221119x10q.htm:21]**  | **2.3**  **[0001558370-23-004115_azo-20230211x10q.htm:25]**  | **2.3**  **[0001171843-23-003497_exh_991.htm:5]**  | **2.3**  **[0001171843-23-005772_exh_991.htm:6]** **[AZO_3329593_7]**  | **2.5**  **[0001171843-23-007428_exh_991.htm:5]**  | **2.4**  **[0001171843-24-001000_exh_991.htm:5]**  | **2.5**  **[0001171843-24-003004_exh_991.htm:5]**  | **2.5**  **[0001171843-24-005333_exh_991.htm:6]**  |
| Payable to inventory ratio (%)      | **131.0**  **[0001558370-22-018835_azo-20221119x10q.htm:19]** **[0001171843-22-007838_exh_991.htm:6]**  | **127.7**  **[0001558370-23-004115_azo-20230211x10q.htm:23]**  | **126.5**  **[AZO_3252722_5]**  | **124.9**  **[AZO_3329593_7]** **[0001171843-23-005772_exh_991.htm:7]** **[0001171843-23-005772_exh_991.htm:0]**  | **124.4**  **[AZO_3368796_6]**  | **119.8**  **[AZO_3375206_6]**  | **119.7**  **[AZO_3390166_6]**  | **119.5**  **[0001558370-24-013758_azo-20240831x10k.htm:42]**  |

e1a7b067329b14f13d0dc7413dc602c5bdb6e287ad8ca1d4d4316709d854daed

2d47272dc09797d5c5f4ba589b4a2633dbbd77c3d7b5ff7dadae731b1da37a5b

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

863c092996248590a0d5b8d3f378fc506e697574ad59cb66afb63de15298427a

f8b973958304dbaf75d5135ed05a44d46ed0801c7056e862c75441272cabc07f

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 **[0001558370-24-013758_azo-20240831x10k.htm:65]** **[0001558370-24-013758_azo-20240831x10k.htm:3]**. 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 **[0001558370-24-013758_azo-20240831x10k.htm:65]** **[0001558370-24-013758_azo-20240831x10k.htm:3]**. AutoZone's business is divided into two primary segments: Auto Parts Stores and Other, which includes ALLDATA and E-commerce **[0001558370-24-013758_azo-20240831x10k.htm:95]** **[0001558370-23-019871_azo-20231118x10q.htm:14]**. 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 **[0001558370-24-013758_azo-20240831x10k.htm:34]**. 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 **[0001558370-24-013758_azo-20240831x10k.htm:65]** **[0001558370-24-013758_azo-20240831x10k.htm:3]** **[0001171843-24-005333_exh_991.htm:1]**.

1. **Auto Parts Stores** - Operates retail locations offering a comprehensive selection of automotive replacement parts, maintenance items, and accessories for various vehicles.
2. **Other** - Encompasses ALLDATA, a provider of automotive diagnostic and repair software, and E-commerce platforms for online sales of automotive products.

d794b39de9a5fa62800e40b72f55979f69e3d173f42a184d4c7ef7eed645fe6e

1. 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?  **[AZO_3401973_4]** 
2. 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?  **[AZO_3401973_4]** 
3. 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?  **[AZO_3401973_2]** 
4. 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?  **[AZO_3401973_4]** 
5. 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?  **[AZO_3401973_20]** 

17bf012e6f48c473b2deffab3754b7225ed54aadf13030a861b513a554da3a43

United States

Mexico

Brazil

Auto Parts Stores

Other

International

Total Revenue

e8edc067bc34ecac919762d9f89379c00797e5e315376eee32f4c06aae150b24

- Failure

- Maintenance Items

- Discretionary

649a100b07c302bb17cb39cfda836c83e57c43666e860f49ffab49aaf5102df2

69c3a9e8f1da3d9c450ce8b3ae936f97b4f65cb09d20c9e9ee78a05f98f454a2

After-tax ROIC (%)

Debt to EBITDAR (Ratio)

Payable to inventory ratio (%)

3e0856a6257ea07654b01712c082b5b4bb68004817ed4cf568902c820d7d6796

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: N/A
- **Guidance**:
  - **Sales Trends**: Modest improvement expected in DIY and commercial sales trends, with better performance anticipated in Q2 and Q3.
  - **Interest Expense**: Planning for interest expenses in the **$108 million** range.
  - **Tax Rate**: Suggest modeling a tax rate of approximately **23.4%**.
  - **Foreign Exchange Impact**: Expect a **$55 million** drag on revenue, a **$16 million** drag on EBIT, and a **$0.63 per share** drag on EPS.
  - **Store Openings**: Focus on accelerating store growth with more Hubs and Mega-Hubs planned  **[AZO_3401973_1]** **[AZO_3401973_5]** **[AZO_3401973_6]** **[AZO_3401973_2]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: Q1 FY 2025 and FY 2025
- **Guidance**:
  - **Foreign Currency Impact**: Expect a **$55 million** drag on Q1 revenue, a **$16 million** drag on EBIT, and a **$0.63 a share** drag on EPS. For FY 2025, anticipate a **$265 million** impact on revenues, a **$90 million** impact on EBIT, and a **$3.64 a share** impact on EPS.
  - **Interest Expense**: Planning for interest expenses in the **$108 million** range for Q1 FY 2025.
  - **Tax Rate**: Suggest modeling a tax rate of approximately **23.4%** for Q1 FY 2025.
  - **Inflation and Pricing**: Expect like-for-like SKU retail inflation in the **low single digits** for FY 2025.
  - **Store Openings**: Plan to open **20+ Mega-Hubs** in FY 2025 with about **70 Mega-Hubs** in the pipeline  **[AZO_3401973_6]** **[AZO_3401973_5]** **[AZO_3401973_1]** **[AZO_3401973_11]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  - **Leverage Ratio**: Committed to a leverage target of **2.5x**.
  - **Interest Expense**: Planning for interest expenses in the **$148 million** range for Q4.
  - **Tax Rate**: Suggest modeling a tax rate of approximately **23.2%** for Q4.
  - **LIFO Credits**: Expect approximately **$10 million** in LIFO credits in Q4.
  - **Capital Expenditure**: Expect to spend close to **$1.1 billion** in CapEx for the fiscal year.
  - **Store and Mega-Hub Expansion**: Continue opening new Mega-Hubs and Hubs, with a long-term goal of over **200 Mega-Hubs**  **[AZO_3390166_6]** **[AZO_3390166_5]** **[AZO_3390166_4]** **[AZO_3390166_12]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Sales Growth**: Expect continued sales growth across domestic and international store bases.
  - **Commercial Business**: Focus on growing domestic commercial business.
  - **International Business**: Plan to accelerate new store openings internationally.
  - **Mega-Hub Expansion**: Continue aggressively opening Mega-Hubs.
  - **Capital Expenditures**: Expect to spend close to **$1.1 billion** in CapEx.
  - **Gross Margin and Operating Expenses**: Committed to managing operating expenses in line with sales growth.
  - **Share Repurchase Program**: Committed to returning cash to shareholders with over **$2.1 billion** remaining under share buyback authorization  **[AZO_3375206_6]** **[AZO_3375206_4]** **[AZO_3375206_7]** **[AZO_3375206_2]** **[AZO_3375206_0]** **[AZO_3375206_19]** **[AZO_3375206_21]** .

456cc16ba79bec7c392b3c8a60d8d7ea6e9526adb5d06df0171dda3163690491

- 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  **[0001558370-24-013758_azo-20240831x10k.htm:10]** 

24942d9003d4cbb4807a296a418ca35971e44a6be92d66a8d7e908340963eaca

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                   | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                 |
|------------------------|--------------------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| William C. Rhodes, III | Executive Chairman, Customer Satisfaction                                | January 2024       | William C. Rhodes, III serves as the **Executive Chairman** of AutoZone. He was appointed to this role in **January 2024**. Prior to this, he served as AutoZone's President and CEO and has been a director since **2005**  **[0001558370-24-013758_azo-20240831x10k.htm:11]** **[0001558370-24-013319_azo-20241218xpre14a.htm:28]** .              |
| Philip B. Daniele III  | President and Chief Executive Officer, Customer Satisfaction             | January 2024       | Philip B. Daniele III was appointed as the **President and CEO** of AutoZone in **January 2024**. He was CEO-Elect in **June 2023** and has been with AutoZone since **2005**, holding several key management positions  **[0001558370-24-013758_azo-20240831x10k.htm:11]** **[0001558370-23-016668_azo-20230826x10k.htm:11]** **[0001558370-24-013319_azo-20241218xpre14a.htm:25]** **[0001558370-24-013963_azo-20241218xdef14a.htm:25]** .            |
| Jamere Jackson         | Chief Financial Officer, Customer Satisfaction                           | September 2020     | Jamere Jackson was named **Chief Financial Officer** of AutoZone in **September 2020**. He leads the Finance and Store Development teams and serves on the Board of Directors for Eli Lilly & Co  **[0001558370-24-013758_azo-20240831x10k.htm:11]** .                                           |
| Thomas B. Newbern      | Chief Operating Officer, Customer Satisfaction                           | September 2023     | Thomas B. Newbern serves as the **Chief Operating Officer** at AutoZone. He was named COO in **September 2023** and has been with AutoZone since **1985**, holding various key positions  **[0001558370-24-013758_azo-20240831x10k.htm:12]** .                                                   |
| William R. Hackney     | Executive Vice President – Merchandising, Marketing and Supply Chain     | September 2023     | William R. Hackney was named **Executive Vice President** in **September 2023**. He rejoined AutoZone in October 2022 after a brief retirement and has been with the company since 1983  **[0001558370-24-013758_azo-20240831x10k.htm:12]** **[0001558370-23-016668_azo-20230826x10k.htm:12]** .                                                 |
| Kenneth E. Jaycox, Jr. | Senior Vice President – Commercial, Customer Satisfaction                | July 2024          | Kenneth E. Jaycox, Jr. was named **Senior Vice President – Commercial** at AutoZone in **July 2024**. Before joining AutoZone, he served as Senior Vice President and Chief Commercial Officer for United States Steel Corporation  **[0001558370-24-013758_azo-20240831x10k.htm:12]** **[AZO_3401973_8]** .       |
| Lindsay W. Lehman      | Senior Vice President – Marketing, Customer Satisfaction                 | November 2023      | Lindsay W. Lehman was named **Senior Vice President – Marketing** at AutoZone in **November 2023**. She leads the Marketing and E-commerce teams and joined AutoZone in 2020  **[0001558370-24-013758_azo-20240831x10k.htm:13]** .                                                              |
| Dennis W. LeRiche      | Senior Vice President – Store Operations, Customer Satisfaction          | June 2021          | Dennis W. LeRiche was named **Senior Vice President – Store Operations** in **June 2021**. He served as Divisional Vice President – Store Operations from 2015 to 2021  **[0001558370-24-013758_azo-20240831x10k.htm:13]** **[0001558370-23-016668_azo-20230826x10k.htm:13]** **[0001558370-22-015239_azo-20220827x10k.htm:13]** .                                                             |
| Richard C. Smith       | Senior Vice President – Human Resources, Customer Satisfaction           | December 2015      | Richard C. Smith was named **Senior Vice President – Human Resources** in **December 2015**. He has been with AutoZone since **1985**, previously holding the position of Divisional Vice President – Store Operations  **[0001558370-23-016668_azo-20230826x10k.htm:13]** **[0001558370-24-013758_azo-20240831x10k.htm:13]** **[0001558370-22-015239_azo-20220827x10k.htm:13]** .              |
| Jennifer M. Bedsole    | Senior Vice President, General Counsel & Secretary, Customer Satisfaction| April 2023         | Jennifer M. Bedsole was named **Senior Vice President, General Counsel & Secretary** at AutoZone in **April 2023**. Prior to joining AutoZone, she was a partner with the law firm of Baker, Donelson, Bearman, Caldwell and Berkowitz P.C.  **[0001558370-24-013758_azo-20240831x10k.htm:12]** **[0001558370-23-016668_azo-20230826x10k.htm:12]** . |
| K. Michelle Borninkhof | Senior Vice President and Chief Information Officer, Customer Satisfaction| April 2021         | K. Michelle Borninkhof was named **Senior Vice President and Chief Information Officer** at AutoZone in **April 2021**. Before joining AutoZone, she served as CIO and VP for U.S. Technology at McDonald's  **[0001558370-24-013758_azo-20240831x10k.htm:12]** **[0001558370-23-016668_azo-20230826x10k.htm:12]** **[0001558370-22-015239_azo-20220827x10k.htm:12]** **[0001558370-22-015239_azo-20220827x10k.htm:13]** .                   |
| Eric S. Gould          | Senior Vice President – Supply Chain, Customer Satisfaction              | February 2021      | Eric S. Gould was named **Senior Vice President – Supply Chain** in **February 2021**. He served as Vice President – Supply Chain Replenishment from 2017 to 2021  **[0001558370-24-013758_azo-20240831x10k.htm:12]** **[0001558370-23-016668_azo-20230826x10k.htm:12]** **[0001558370-22-015239_azo-20220827x10k.htm:13]** .                                                                  |
| Domingo J. Hurtado     | Senior Vice President – International, Customer Satisfaction             | September 2018     | Domingo J. Hurtado Rodr\u00edguez was named **Senior Vice President – International** at AutoZone in **September 2018**. He has been with the company since **2001**, leading the company's expansion in Mexico  **[0001558370-24-013758_azo-20240831x10k.htm:12]** **[0001558370-23-016668_azo-20230826x10k.htm:12]** **[0001558370-22-015239_azo-20220827x10k.htm:13]** .                    |

ce88e7a96ad855d33db7ee651bf5f3bf0b2d98cdca72054f4440e42d6ac274d2

**Quarterly guidance for Q2 & Q3 2025:**
- **Foreign exchange impact**: $55M drag on revenue, $16M drag on EBIT, $0.63/share drag on EPS  **[AZO_3401973_5]**   
  (no change from $55M, $16M, and $0.63/share  **[AZO_3401973_1]** )  
- **Interest expense**: $108M  **[AZO_3401973_5]**   
  (no change from $108M  **[AZO_3401973_1]** )  
- **Tax rate**: 23.4%  **[AZO_3401973_5]**   
  (no change from 23.4%  **[AZO_3401973_1]** )  
- **Sales trends**: Modest improvement expected in DIY and commercial sales trends, with better performance anticipated in Q2 and Q3  **[AZO_3401973_5]**   
  (no prior guidance)  
- **Store openings**: Focus on accelerating store growth with more Hubs and Mega-Hubs planned  **[AZO_3401973_5]**   
  (previously “Plan to open 20+ Mega-Hubs in FY 2025”  **[AZO_3401973_1]** , no direct numeric update)  

 **[AZO_3401973_1]**  = Guidance issued in Q4 2024  
 **[AZO_3401973_5]**  = Guidance issued in Q1 2025  

66625f3dd52a47a95b68643d6283f33bd09055732bcc2042b689c97e62c03af5

| Program Details         | Program 1     |
|-------------------------|---------------|
| Approval Date           | **June 19, 2024**  **[0001558370-24-016435_azo-20241123x10q.htm:11]**  |
| End Date/Duration       | N/A           |
| Total additional amount | **$1.5 billion**  **[0001558370-24-016435_azo-20241123x10q.htm:11]**  |
| Remaining authorization amount | **$1.7 billion**  **[0001558370-24-016435_azo-20241123x10q.htm:11]**  |
| Details                 | The Board authorized an additional repurchase of common stock.  **[0001558370-24-016435_azo-20241123x10q.htm:11]**  |

3308aa84554518e3d9ef3de44ba4a38c9f3b2557139b7913e318ca82eb4432dc

7d09d12d9313add3bcc4958a31bf783124be50145e2a0fee6c01740201635949

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1988  **[0001558370-24-013758_azo-20240831x10k.htm:60]**  | Present  | Current auditor   |

1828c5e205802f68773a2609b621d9eedd37d267dafa12ae5a6b87db97083468

- Total Revenue: $4,279.641 million (+2% YoY)  **[0001558370-24-016435_azo-20241123x10q.htm:14]**   
- Auto Parts Stores: $4,199.732 million (+2% YoY)  **[0001558370-24-016435_azo-20241123x10q.htm:14]**   
- Other: $79.909 million (**+7% YoY**)  **[0001558370-24-016435_azo-20241123x10q.htm:14]**   
- Net Income: $564.933 million (**-5% YoY**)  **[0001558370-24-016435_azo-20241123x10q.htm:3]**   

5983d3830d741e9648c01ae8c7aaa8fc5d60ef352de058d9ee29a0933efadac8

| Year | Amount Due (in billions) | Debt Type                              | Interest Rate (%) | % of Total Debt                                                                                   |
|----------|------------------------------|--------------------------------------------|------------------------|-------------------------------------------------------------------------------------------------------|
| 2025     | 0.9                          | 3.250% Senior Notes, 3.625% Senior Notes   | 3.250, 3.625          | 9.9% = (0.9 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                   |
| 2026     | 0.85                         | 3.125% Senior Notes, 5.050% Senior Notes   | 3.125, 5.050          | 9.4% = (0.85 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                  |
| 2027     | 0.6                          | 3.750% Senior Notes                        | 3.750                 | 6.6% = (0.6 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                   |
| 2028     | 0.9                          | 4.500% Senior Notes, 6.250% Senior Notes   | 4.500, 6.250          | 9.9% = (0.9 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                   |
| 2029     | 1.05                         | 3.750% Senior Notes, 5.100% Senior Notes   | 3.750, 5.100          | 11.6% = (1.05 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                 |
| 2030     | 0.75                         | 4.000% Senior Notes                        | 4.000                 | 8.3% = (0.75 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                  |
| 2031     | 0.6                          | 1.650% Senior Notes                        | 1.650                 | 6.6% = (0.6 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                   |
| 2032     | 0.75                         | 4.750% Senior Notes                        | 4.750                 | 8.3% = (0.75 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                  |
| 2033     | 1.35                         | 4.750%, 5.200%, 6.550% Senior Notes        | 4.750, 5.200, 6.550   | 14.9% = (1.35 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                 |
| 2034     | 0.7                          | 5.400% Senior Notes                        | 5.400                 | 7.7% = (0.7 / 9.065) * 100 **[0001558370-24-016435_azo-20241123x10q.htm:10]**                                                                   |

51ce3092c56102e042a6b692e0994aae9c7bf01a4f67d7f0cb9752ade17d5073

Same store sales for Domestic (percent)

Same store sales for International (percent)

Same store sales for Total Company (percent)

Constant currency same store sales for Domestic (percent)

Constant currency same store sales for International (percent)

Constant currency same store sales for Total Company (percent)

Adjusted after-tax ROIC (percent)

Adjusted debt to EBITDAR (ratio)

c2e71bbc06c2af68cdaab39eed0d608e394aa9ecca9948bc34adf827d1b3ad2f

977bce1db26b34f51139d829b7571bff72aa24ca3ce1ada7e2dba4393da406ed

1. **Commercial Sales Challenges**  
   **Q:** How are current trends in the commercial business affecting sales?  
   **A:** The commercial business has been choppy due to wet and cooler spring weather affecting hot weather categories like AC chemicals and batteries. The last four weeks were more challenging, and we didn't see expected performance in those categories.  **[AZO_3390166_8]** 

2. **Inflation Impact on Pricing**  
   **Q:** What is the outlook for inflation and its impact on pricing?  
   **A:** We're moving away from prior years of hyperinflation; average unit retail same-SKU inflation is returning to normal growth levels. We expect inflation numbers to normalize over time, especially in the later quarters of the calendar year.  **[AZO_3390166_9]** 

3. **Gross Margin Improvement**  
   **Q:** Can you discuss gross margin trends and vendor negotiations?  
   **A:** Our gross margins have improved due to easing supply chain issues and inflationary pressures. We're negotiating for deflation with vendors as freight costs decrease. We're in early innings but in a much better position than a year ago.  **[AZO_3390166_10]** 

4. **Mega-Hub Expansion Plans**  
   **Q:** What are the plans for Mega-Hub openings and their impact?  
   **A:** We plan to have over **200 Mega-Hubs** at full build-out. Last year we opened 20, fewer this year, but the pipeline is strong. Openings will accelerate in FY '25 and beyond. Mega-Hubs have been great assets, performing better than normal stores, aiding both commercial and DIY markets.  **[AZO_3390166_12]** **[AZO_3390166_26]** 

5. **Pricing Strategy Discipline**  
   **Q:** Will you consider price investments to boost sales if trends remain sluggish?  
   **A:** We've been very disciplined on pricing and like where we are today. We don't see a need to adjust pricing to accelerate sales growth. The industry's demand is relatively inelastic, and we believe our current pricing strategies are appropriate on both DIY and commercial sides.  **[AZO_3390166_16]** 

6. **Consumer Pressure on Big-Ticket Items**  
   **Q:** Are you seeing pressure on lower-income consumers affecting shopping patterns?  
   **A:** Big-ticket items have been challenging across retail, including for us. While necessary repairs must be purchased, discretionary categories have been under pressure. Maintenance items may increase as consumers aim to take care of their cars to save money in the long run.  **[AZO_3390166_22]** 

7. **Store Growth Acceleration**  
   **Q:** Will there be an acceleration in store openings domestically and internationally?  
   **A:** Yes, we're planning to significantly expand store growth. Domestically, we aim to accelerate beyond the historical **150 stores** per year. Internationally, we're pleased with growth in Mexico and prospects in Brazil, and we plan to go faster there as well.  **[AZO_3390166_18]** 

8. **Initiatives to Accelerate Sales**  
   **Q:** What can you do to improve sales trends?  
   **A:** We're doubling down on customer service and execution. Investing in hard parts coverage, Hubs, and Mega-Hubs drives sales. On the commercial side, we're enhancing service with better and faster delivery, leveraging technology, and expanding assortments.  **[AZO_3390166_16]** **[AZO_3390166_20]**  

9. **Inflation Trends Muted**  
   **Q:** How is current inflation affecting ticket growth?  
   **A:** Inflation is significantly lower than last year, leading to muted ticket growth. We expect inflation to normalize over time, but currently it's running lower than historically. We're staying disciplined in pricing where inflation exists.  **[AZO_3390166_14]** **[AZO_3390166_15]** **[AZO_3390166_17]** 

10. **Weather Impact on Sales Outlook**  
    **Q:** How has weather affected sales, and what is the outlook?  
    **A:** Challenging weather, including wet and cooler conditions, has impacted sales in hot weather categories. We expect the summer to heat up, improving category mix and boosting sales as we move forward. Better weather should help improve sales.  **[AZO_3390166_13]** **[AZO_3390166_23]** 

11. **Comparisons to 2017 Aftermarket Trends**  
    **Q:** How does this year's aftermarket compare to 2017's challenges?  
    **A:** We've had soft winter weather patterns for the last two years, affecting part failures and sales in certain categories. Without prior inflation benefits, it's undetermined how sales will trend, but we expect a better category mix in the summer.  **[AZO_3390166_23]** 

12. **Gross Margin Outlook Amid LIFO Charges**  
    **Q:** Can you offset LIFO headwinds affecting gross margin next quarter?  
    **A:** We've improved gross margins through merchandising and supply chain efforts, but such high improvements may not continue. We believe we'll have potential to offset most of the LIFO pressure, but margin gains may be muted as inflation benefits wane.  **[AZO_3390166_24]**  

13. **Improving Trends in Tire Centers and Dealers**  
    **Q:** Are trends improving with tire centers and other customer segments?  
    **A:** The tire segment remains under pressure, although the downward trend has flattened a bit. Buy here, pay here lots and used car centers have also been challenged due to slower used car sales and economic pressures on consumers, especially for big-ticket items like new tires.  **[AZO_3390166_11]** 

14. **FY '25 Sales Sequencing**  
    **Q:** Will fiscal '25 sales be second-half weighted due to various factors?  
    **A:** While we don't give guidance, we're excited about the upcoming summer improving sales through better merchandise categories and mix. Our commercial initiatives are maturing, but turnaround will take time; it's not going to be a hockey stick that turns around in six weeks.  **[AZO_3390166_13]** **[AZO_3390166_22]** 

15. **Speed Initiative Rollout**  
    **Q:** Can you discuss the pace of the speed initiative rollout?  
    **A:** We've been working on it for about a year and a half, seeing positive results earlier this year. We're probably in the middle innings of rolling it out to stores and will continue adding incremental stores. We believe better customer service and faster delivery will help gain new customers and grow share of wallet.  **[AZO_3390166_25]** **[AZO_3390166_20]** 

16. **Mega-Hub Opening Challenges**  
    **Q:** Is slower Mega-Hub opening due to structural issues or execution?  
    **A:** Mega-Hubs are large boxes in hard-to-find locations. While challenging, we've worked through issues and expect openings to accelerate into FY '25. We know where we want to be and are working to get there despite the time it takes.  **[AZO_3390166_26]** **[AZO_3390166_12]** 

17. **Consumer Trading Down in Commercial**  
    **Q:** Are commercial customers trading down due to economic pressures?  
    **A:** It's tough to determine customer migration in commercial. Segments like tires and used car dealers are challenged. Customers may be moving down the cost curve, but it's hard to understand precisely on the commercial side.  **[AZO_3390166_19]** **[AZO_3390166_21]** 

18. **Potential to Accelerate Sales in Near Term**  
    **Q:** Are there building blocks to strengthen the business in the near term?  
    **A:** Comparisons get easier in the fourth quarter. We're focused on jamming more parts into local markets, improving service and delivery speed, and leveraging our growth initiatives. Despite macro challenges and pressure on big-ticket items, we're underpenetrated and have opportunities to accelerate growth.  **[AZO_3390166_21]** **[AZO_3390166_26]** 

19. **Underlying Gross Margin Potential**  
    **Q:** How much room do you have to improve gross margin amid uncertainties?  
    **A:** We've improved gross margins significantly through merchandising and supply chain efforts, but such high improvements may not continue. We believe we can offset most of the LIFO pressures, but margin gains may be muted as inflation benefits wane.  **[AZO_3390166_24]**  

20. **Inflation Details in Commercial Sector**  
    **Q:** Can you elaborate on inflation trends in the commercial sector?  
    **A:** Ticket growth is lower than historically due to lower inflation. We don't have the inflation tailwind now. Inflation is significantly lower than a year ago and lower than historical levels. The industry remains disciplined in pricing, passing through inflation when it exists.  **[AZO_3390166_14]**  

21. **Discipline in Pricing Despite Low Inflation**  
    **Q:** You expect inflation to normalize, but right now it's muted?  
    **A:** Yes, currently inflation is pretty muted. We're disciplined in pricing dynamically where we see inflation. We believe inflation will return over time, but it's currently lower than historical norms.  **[AZO_3390166_15]**  

22. **Sales Gap Between DIY and Commercial**  
    **Q:** Is the commercial end customer slowing more than DIY due to trading down?  
    **A:** It's hard to assess, but commercial segments like tires and used car dealers are challenged. Customers might be trading down or moving along the cost curve, but it's difficult to pinpoint in the commercial side.  **[AZO_3390166_19]**  

23. **Addressing Sales Slowdown**  
    **Q:** Is there anything else you can do to accelerate sales trends?  
    **A:** We're enhancing customer service, execution, and investing in key areas like hard parts coverage and Mega-Hubs. On the commercial side, we're improving delivery speed and leveraging technology. We don't see the need to adjust pricing to boost sales.  **[AZO_3390166_16]**  

24. **Store Capacity and Demand Weakness**  
    **Q:** Is demand weakness due to your current store base's volume?  
    **A:** We continue to optimize our store footprint and augment with Hubs and Mega-Hubs to bring more parts closer to customers. This strategy supports growth in both DIY and commercial. The current store capacity isn't causing demand weakness; we're focusing on expanding availability and accessibility.  **[AZO_3390166_18]**  

27c99d5374a43d8746d3c7b92f977c25d87064e14ea92ee4afccd1ab5d24f1f7

- **AutoZone is expanding its speed initiative**, improving customer service and faster delivery times, which is gaining new customers and increasing share of wallet as it rolls out to more stores.  **[AZO_3390166_25]** **[AZO_3390166_21]**
- **Accelerated opening of Mega-Hubs is expected in FY '25**, enhancing parts availability for both DIY and commercial customers, supporting sales growth.  **[AZO_3390166_25]** **[AZO_3390166_26]**
- **Underpenetrated in the commercial segment with less than 5% market share**, AutoZone is confident about its growth initiatives to improve parts availability, service, and delivery speed, presenting significant opportunities to gain market share and accelerate growth.  **[AZO_3390166_21]** **[AZO_3390166_13]**

dfa28d569735889fceb8de8437b15f88e96a1da3f5cc208f683fa859bb6b7008

- The company's commercial sales growth has been choppy, with the last four weeks of the quarter being particularly challenging, indicating potential difficulties in sustaining growth momentum in this segment.  **[AZO_3390166_8]**
- There are execution challenges in expanding Mega-Hub openings due to difficulty in finding suitable locations, which may slow down the company's growth initiatives and affect parts availability.  **[AZO_3390166_26]**
- Despite efforts to improve sales trends, the company acknowledges reliance on external factors such as weather and indicates that accelerating sales growth may take time, potentially impacting near-term performance.  **[AZO_3390166_16]**

686a44d486aaf57f2bf4cbda93184ab083c71a0619e9817f8d63d001570542cc

- **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.  **[AZO_3368796_9]**
- **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.  **[AZO_3368796_8]**
- **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.  **[AZO_3368796_17]**

3fac99e45bd5cea488006a056a43dec160a5f60dfaa71cabb37c574d386fe572

- **Uncertainty in returning to double-digit growth in the commercial business**, as the company cannot predict when this growth will resume, indicating potential challenges in regaining market share.  **[AZO_3375206_13]**
- **Margin pressure expected due to faster growth in the lower-margin commercial business**, which could impact overall profitability as the commercial mix increases.  **[AZO_3375206_15]** **[AZO_3375206_16]**
- **Persistent staffing challenges with in-store staff retention and turnover rates not yet back to pre-pandemic levels**, potentially affecting customer service and sales performance.  **[AZO_3375206_26]**

4080e804df3ae4f239693c5c38e3549a8837153ec78ece45341e9c50780eeef7

- **Underperformance in Discretionary DIY Categories:** AutoZone's discretionary DIY categories, such as accessories and performance parts, have been challenging for at least a year, and improvement is uncertain until the **pressured consumer** gains economic relief and confidence improves.  **[AZO_3401973_14]**
- **Muted Retail Inflation Leading to Low Average Ticket Growth:** The company is experiencing **lower than historical levels of retail inflation**, resulting in muted average ticket growth and dampening revenue growth. This trend may continue until product cost inflation returns.  **[AZO_3401973_14]** **[AZO_3401973_18]**
- **Upcoming Headwinds from LIFO Credits and FX Volatility:** AutoZone benefited from approximately **$40 million of LIFO credits** this year, which will become a headwind next year. Additionally, significant **FX volatility** could negatively impact their P&L due to the size of their international operations.  **[AZO_3401973_17]**

0f5d21ce61d395038f87d22d9ff75a193697aa1e290e3aa7fa34969482d4dfb1

1. **Operating Income Outlook**  
   **Q:** Can you maintain EBIT growth if comps stay sluggish?  
   **A:** We expect comps to improve throughout the year and are positioning ourselves with inventory and infrastructure to seize opportunities.  **[AZO_3411244_10]**  We anticipate strong gross margins due to effective merchandising  **[AZO_3411244_10]** , and we're managing SG&A expenses in a disciplined way.  **[AZO_3411244_10]**  We plan to invest in growth without negatively impacting operating income.  **[AZO_3411244_10]** 

2. **Mega-Hub Expansion**  
   **Q:** Why raise Mega-Hub target to 300, and any change in opening cadence?  
   **A:** We've increased our Mega-Hub target because these stores continue to deliver outsized performance and boost both commercial and DIY sales.  **[AZO_3411244_19]**  We've learned we can place Mega-Hubs closer together with minimal cannibalization.  **[AZO_3411244_19]**  We have about 80 stores in the pipeline, but opening them takes around two years.  **[AZO_3411244_19]** 

3. **Inflation and Tariffs Impact**  
   **Q:** How will rising CPI and tariffs affect pricing?  
   **A:** Tariffs are uncertain, but we've diversified suppliers and remain nimble in our supply chain.  **[AZO_3411244_11]**  Freight costs are spiking, which may increase cost of goods and pricing over time.  **[AZO_3411244_11]**  We expect normal industry inflation to return, potentially serving as a tailwind, but it will develop slowly.  **[AZO_3411244_11]** 

4. **Competitor Store Closures**  
   **Q:** Impact of peers exiting West Coast markets?  
   **A:** As competitors close stores and discount heavily, we may face short-term headwinds from price cuts.  **[AZO_3411244_7]**  However, over time, this presents a significant opportunity to gain market share in those regions.  **[AZO_3411244_7]** 

5. **Same-Store Sales Impact**  
   **Q:** How does the calendar shift affect comps?  
   **A:** The extra week last year negatively impacted this quarter's comps by about **1 point**.  **[AZO_3411244_14]**  We expect to recover this in the spring, potentially seeing an extra bump in comps.  **[AZO_3411244_14]** **[AZO_3411244_16]** 

6. **Capital Allocation and Debt Levels**  
   **Q:** How are you approaching capital allocation and debt?  
   **A:** No change in our capital allocation policy; we aim to maintain a leverage target around **2.5x**.  **[AZO_3411244_12]**  This provides financial flexibility to invest and return cash to shareholders.  **[AZO_3411244_12]**  We'll manage our debt accordingly, impacting decisions on upcoming debt maturities.  **[AZO_3411244_12]** 

7. **Quarterly Sales Cadence**  
   **Q:** How did the first quarter trend into the second?  
   **A:** The DIY business underperformed in Rust Belt markets but was consistent overall.  **[AZO_3411244_8]**  The commercial business was weaker in the first four weeks due to hurricanes disrupting Southeast markets but returned to normal volumes later in the quarter.  **[AZO_3411244_8]** 

8. **SG&A Management**  
   **Q:** How are you handling SG&A growth?  
   **A:** We are investing in growth initiatives focused on speed and productivity while managing SG&A expenses in a disciplined way.  **[AZO_3411244_10]**  Wage pressures have cooled, helping control costs.  **[AZO_3411244_22]** 

9. **Weather Impact Expectations**  
   **Q:** Is winter improving sales in cold regions?  
   **A:** It's early in the quarter, but we are encouraged by initial winter conditions.  **[AZO_3411244_9]**  The key will be whether Rust Belt markets receive cold and snow throughout the season, which hasn't occurred in recent years.  **[AZO_3411244_9]** 

0f68fa8718d717008b50e83ab9ffb91d75e9ae679fe01b1270c81470071c3e25

- **Significant Expansion of Mega-Hub Strategy**: AutoZone plans to have **over 200 Mega-Hubs**, currently in the **third inning** of this growth. This strategy enhances parts availability, improves customer service, and drives market share growth in both commercial and DIY segments.  **[AZO_3375206_19]**
- **Large Opportunity in Commercial Market Share Growth**: With a current market share of **4-5%** in a nearly **$100 billion** commercial market, AutoZone sees a substantial opportunity for growth. Initiatives are in place to accelerate sales, expecting consistent share and same-store sales growth in commercial over the long term.  **[AZO_3375206_13]**   **[AZO_3375206_8]**
- **Gross Margin Expansion from Cost Deflation**: AutoZone anticipates **gross margin improvement** as procurement costs decrease while maintaining retail prices due to industry pricing practices. This margin expansion is supported by abating cost pressures and provides an opportunity to enhance profitability.  **[AZO_3375206_15]**

247c586c2c5d32872c24d6b5de495e2360f76ef5df143de60665157685fbc4dd

1. **Return to Double-Digit Commercial Growth**  
   **Q:** Can you return commercial growth to double digits over time?  
   **A:** We believe we can improve from here, expecting faster growth, especially in the back half of this year. While it's tough to nail down exactly when we'll hit double-digit growth, we see consistent share growth and a long-term positive trajectory for our commercial business as we expand our hubs and Mega-Hubs and improve assortments to take share.  **[AZO_3375206_14]** 

2. **Gross Margin Sustainability**  
   **Q:** Is gross margin expansion sustainable without inviting competition?  
   **A:** We don't believe we're over-earning on gross margin. We've been disciplined in expanding margins, negotiating deflation with suppliers as costs abate, and maintaining retails without giving back pricing. Improvements in our supply chain efficiencies contribute to margin expansion. The industry remains disciplined, and the underlying fundamentals of our gross margin are sustainable as we move forward.  **[AZO_3375206_14]** **[AZO_3375206_15]** 

3. **Negotiating Deflation and Pricing**  
   **Q:** Are you lowering procurement costs while holding retails steady?  
   **A:** Yes, as cost pressures ease, we're negotiating deflation with suppliers but maintaining retail prices, leading to margin expansion. This approach has been consistent in the industry for decades. We don't anticipate lowering retails and expect margins to benefit unless freight costs spike again.  **[AZO_3375206_15]** 

4. **SG&A Investments and EBIT Margins**  
   **Q:** How are SG&A investments affecting EBIT margins?  
   **A:** We're investing in SG&A and CapEx to grow sales and EBIT dollars. Over time, SG&A growth should start to bend down slightly. While we may accept lower margin rates in commercial to gain higher gross profit dollars, we're focused on increasing EBIT dollars.  **[AZO_3375206_16]** 

5. **International Expansion Strategy**  
   **Q:** Are you considering expansion into Canada?  
   **A:** While Canada is interesting, we're currently focused on expanding in Mexico and Brazil, where we see better opportunities. Canada has a solid competitive base, and although we don't rule it out in the future, it's not a focus for us at the moment.  **[AZO_3375206_13]** 

6. **Competition in Commercial Market**  
   **Q:** How is competition from WDs affecting your business?  
   **A:** Supply chain constraints have mostly resolved, with inventories improving but not fully back to pre-pandemic levels. WDs have likely recovered inventories, but we don't expect them to materially improve in the short term. The competitive environment is stable, and we're focused on our growth opportunities.  **[AZO_3375206_12]** 

7. **Tax Refund Timing and Sales Impact**  
   **Q:** Are tax refunds lagging, and how will they affect sales?  
   **A:** Tax refunds may be slightly delayed by a week or two, but over our 12-week quarter, we expect them to be similar to last year. Any slight shift won't be meaningful to the quarter; we expect tax refunds to be normal.  **[AZO_3375206_10]** 

8. **Weather Impacts on Demand**  
   **Q:** Has there been enough winter weather to drive demand?  
   **A:** Time will tell. While some regions haven't experienced extreme cold weather, we're focused on growing market share regardless of weather conditions. We'd prefer more cold weather in major Eastern cities, but we can't control it.  **[AZO_3375206_28]** 

fac9dd1d5f07c613e52bf1386aa8533d60d0123946b5848f14cd4470f3a34ba1

1. **Gross Margin Outlook**  
   **Q:** What is the outlook for gross margin improvement?  
   **A:** Management expects to continue driving gross margin improvements through strong merchandising and supplier negotiations. While there's a slight early drag from adding a couple of distribution centers, they believe merchandising margin improvements will power growth moving forward. They are closely watching industry pricing and anticipate that as inflation returns, they can push retails harder. They remain disciplined and have a positive outlook for **FY '25**.  **[AZO_3401973_10]** 

2. **Earnings Growth Algorithm**  
   **Q:** Can you return to double-digit EPS growth soon?  
   **A:** Management maintains that the long-term algorithm of consistent, steady growth and margin expansion remains unchanged. Near-term factors like FX headwinds and LIFO may impact quarterly results, but they believe growth initiatives and macro improvements will accelerate the top line, key to achieving the algorithm. They feel good about business fundamentals but acknowledge that in the current environment, it's tough to achieve double-digit EPS growth quarter-over-quarter. Long term, they expect to return to it.  **[AZO_3401973_20]** 

3. **FX Impact and LIFO Credits**  
   **Q:** How will FX and LIFO affect EBIT growth?  
   **A:** Management highlighted about **$40 million** of LIFO credits this year, becoming headwinds next year. Depending on inflation, about half might be offset. On FX, they are transparent about current spot rates and potential P&L impacts but are not predicting where FX will land. With significant international profitability, FX swings can impact results, but they will update as the year progresses.  **[AZO_3401973_17]** 

4. **Commercial Sales Growth and Hubs**  
   **Q:** When will commercial sales accelerate?  
   **A:** Management anticipates sequential improvement in commercial sales, viewing it as a progressive build due to the pressured consumer impacting both DIY and commercial segments. They are enhancing store assortments, opening more Hubs and Mega-Hubs to bring inventory closer to customers, and streamlining customer service to improve speed on hard-to-find parts. They are confident in their strategies and expect continuous growth.  **[AZO_3401973_9]** **[AZO_3401973_11]** **[AZO_3401973_16]** 

5. **Impact of Consumer Behavior**  
   **Q:** How are DIY and commercial markets performing?  
   **A:** The DIY market is down low single digits, mainly due to pressure on discretionary categories like accessories and performance parts, and slower ticket growth amid lower retail inflation. Improvement is expected when the pressured consumer gains economic relief and confidence improves. In the commercial market, which has been flat to slightly declining, they have accelerated sales growth and are excited about initiatives like more Hubs and Mega-Hubs to enhance growth.  **[AZO_3401973_14]** 

6. **Pricing Dynamics and Ticket Average**  
   **Q:** Is competitive pricing affecting ticket averages?  
   **A:** Management hasn't seen radical changes due to competitors investing in price. They monitor pricing closely and focus on wholesale distributors in their strategies, seeing no material changes. The lack of average ticket growth is attributed to cost factors rather than competitive pricing. As costs increase, they will pass them to consumers, resulting in retail average ticket inflation.  **[AZO_3401973_22]** 

7. **Investments in SG&A**  
   **Q:** How will SG&A growth be managed in 2025?  
   **A:** Management will continue to invest in a disciplined way to support growth initiatives, including store payroll and IT to improve customer and employee experience. They are responsible in managing SG&A, ensuring efficiency, especially in a softer sales environment. They balance investment in growth while being disciplined when the top line is softer.  **[AZO_3401973_24]** 

8. **Car Park Dynamics**  
   **Q:** Is there an air pocket in car park growth?  
   **A:** Management doesn't anticipate an air pocket or headwind from cars coming off warranty or lower new car sales during the pandemic. Cars are lasting longer, with the average vehicle age increasing to **12.6 years**, and expected to rise further. Fewer cars are being scrapped, and technological improvements mean cars stay on the road longer. They view this as a positive tailwind for the business.  **[AZO_3401973_24]** 

9. **Inflation Returning**  
   **Q:** When will inflation return and what are the drivers?  
   **A:** Historically, the industry has seen **3% to 5%** inflation in average ticket and **1% to 3%** decline in transactions, driven by parts inflation and technology enhancements. Over the last year, product costs haven't increased much due to hyperinflation during the pandemic. They expect inflation to return in **2025** and revert to normal trends. If tariffs occur, they will pass those costs to consumers, leading to price increases and potential gross margin improvement.  **[AZO_3401973_18]** 

10. **Q1 and FY '25 Outlook**  
    **Q:** What is the outlook for Q1 and store growth?  
    **A:** Management expects Q1 to be similar to the last quarter, with the consumer under the same pressure. They anticipate modest improvement but don't see catalysts for significant change until possibly after the December timeframe. They plan to open **20-plus** Mega-Hubs in **FY '25**, with the majority opening in the latter part of the year. Store growth will reaccelerate but is back-end loaded due to timing.  **[AZO_3401973_23]** 

ba7e26a3f00102e556ace03f52e282cdc11a47e0f8919d0447b14872a252dc4d

- **AutoZone is successfully gaining market share in both DIY and commercial segments**, with strategies such as opening **Hubs and Mega-Hubs** to improve inventory availability and customer service, leading to sequential improvements in commercial sales growth.  **[AZO_3401973_9]** ,  **[AZO_3401973_14]**
- The company is benefiting from a **growing and aging car park**, with the **average vehicle age increasing to 12.6 years**, providing a tailwind as cars last longer and require more maintenance, supporting demand for AutoZone's products and services.  **[AZO_3401973_24]**
- AutoZone is maintaining a **disciplined investment approach**, balancing SG&A expenses with sales growth, while continuing to invest in growth initiatives like **IT improvements and payroll** to enhance the customer experience and drive future growth.  **[AZO_3401973_25]**

f6b4c9b3e920b5c46831d6c5d9eb0eb7dae58b3596c138a68ddcf6a70b1de8c0

Autozone Inc (AZO)

Financials