News

AutoZone Reports Higher Profit in Fiscal First Quarter

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4.7

Andrew R. Michaud

• December 05, 2023

AutoZone, the car-parts retailer, has announced a higher profit in its fiscal first quarter. The company recorded a profit of $593.5 million for the quarter ended Nov. 18, compared with $539.3 million in the same quarter last year.

Strong Earnings and Sales Growth

Earnings per share were $32.55, up from $27.45 in the year-ago quarter, surpassing analyst projections for $31.57. Quarterly sales increased to $4.19 billion from $3.99 billion last year, aligning with analysts' estimates.

Impressive Same-Store Sales

AutoZone's same-store sales, which account for store openings and closings, rose by 1.2% domestically and more than 25% internationally.

Expanded Gross Margin and Operating Costs

The company also experienced an expansion in gross margin, reaching 52.8%, which can be attributed to improved supply chain costs and higher merchandise margins. However, operating costs as a percentage of sales increased due to higher domestic store payroll and investments in technology initiatives.

Inventory Increase

AutoZone's inventory saw a 3% increase from the previous year, mainly driven by the opening of new stores.

Positive Outlook

Despite tough comparisons from the previous year, AutoZone's domestic sales performed solidly, while the international business continued to achieve strong sales growth. Chief Executive Bill Rhodes expressed satisfaction with the company's performance.